Indian government’s Rs 344 bn bonanza for solar sector
The Government of India has approved the launch of KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, to promote the use of solar powered agriculture pumps by farmers and installation of small renewable power plants (500 KW to 2 MW) by farmers/cooperatives/panchayats on their lands, with a funding support of Rs 344.22 billion.
The wind sector, in the last two years, has not seen much traction due to various reasons. And because of the recent cancellation of auctions in various states, the year will pass with a no-show from the sector that had earlier added 34 GW of capacity.
Safeguard Duty: A Trade Barrier
The domestic manufacturers have had a long history of conflict against the imported solar components as foreign (Chinese) suppliers continued dumping solar components in India at a much lower rate than the existing market price. Therefore, the domestic manufacturers requesting the Government of India to safeguard the domestic industry growth was quite a valid appeal.
A Ray of Hope, Amid the Gloom
Amidst the chaos seen in the power sector, with 22,000 MW thermal power projects lying idle for the need of coal or gas and lenders taking power generating assets to National Company Law Tribunal (NCLT) to recover dues, the transmission sector- with longer life cycle and lower risks- has exhibited the only ray of hope for investors and developers alike.
The recent draft amendments by the Ministry of Power for group captive power has not gone well with the captive power players. The amendments are blessings in disguise for state distribution companies (DISCOMs), as it was on their complaints that the government has acted upon.
Brightening up Households
Uninterrupted and quality power supply is a precursor to economic development for any country. Electricity transforms people's lives and spurs them towards a better future.
New solar bidding guidelines will boost investors' morale: ICRA
MNRE’s recent guidelines for solar energy bids, are a positive development for the sector as it addresses some key concerns, a report by rating agency ICRA states. Some of these concerns are off-taker credit profile, grid curtailment and termination payments.
Meeting AT&C loss target a challenge for UP & Rajasthan
Under UDAY, progress in participation in terms of signing of MoUs and implementation of the scheme with respect to debt take-over/ refinancing has been satisfactory so far. Nonetheless, ability to reduce aggregate technical & commercial (AT&C) loss in line with targets as well as adequate tariff hike by SERCs will be critical for distribution utilities which have weak financial position, going forward so as to ensure sustained financial turnaround.
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