The Videocon Group today announced its foray into the solar energy sector through a 50:50 joint venture with Belgium-based global renewable energy developer, Enfinity.
The JV is planning to produce 2,000 megawatts solar energy in the next few years, a top Videocon official said.
"The 50:50 joint venture between the Videocon Group and Belgium-based Enfinity will develop large scale projects in India. Our target is to create 2,000 megawatt solar energy capacity within a couple of years," Videocon's Director, Saurabh P Dhoot, told PTI here.
The joint venture is planning to de-centralise the power generation program, he said, which means that it would be setting up facilities in several places with different capacities.
The JV partners have held talks with several State Governments such as Rajasthan, West Bengal, Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh, to explore possibilities of setting up plants there.
In the first year, the JV has set a target of generating 100 megawatts, Dhoot said. He, however, declined to divulge investment details.
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It is estimated that for creating 2,000 megawatts solar energy capacity, the total investment needed would be around Rs 50,000-crores.
The estimated cost to set up the infrastructure to produce one megawatt of solar power in India is around Rs 25-crore. The 2,000 MW capacity would be achieved in phases, he said.
Enfinity Group's CEO, Hans De Bacuer said that the JV would raise 70-75 per cent of its total investment requirement through debt.
"We will raise 70-75 per cent of our total investment through debt. Banks are interested in long-term financing as the infrastructure we create will generate uninterrupted energy for the next 30-years," he said.
Under the Government's solar mission which has set a target of 20,000 megawatts of solar energy by 2020, the Government has assured the company that it would buy solar energy at Rs 18 per unit in the initial period and cross-subsidise it with thermal power, De Bacuer said.
Apart from that, the Government is willing to give financial assistance to rural areas to implement solar power projects.