Solar power company Tata BP Solar, a joint venture between Tata Power and BP Solar, is shifting its business focus in the domestic sector from government projects to the private sector, including individuals, corporations and banks. The joint venture was set up in November 1989. |
Till now, in the domestic market the government projects accounted for about 70 per cent of the company's total revenues. |
A senior Tata BP Solar official told Business Standard: "The market is growing exponentially. The government policies, though inconsistent, are encouraging. Consumers get subsidies and soft loans and there is income-tax benefit for using solar equipment. The government is making it compulsory for new buildings to have solar water heaters. Other factors that will drive the growth are the scarcity and rising rates of grid electricity." |
The company officials said that they have received encouraging response from the private sector. Companies getting more environment conscious and insisting on a green image is fueling the inclination towards solar energy, they said. |
Tata BP Solar expects to grow by 30 per cent in 2005-2006 and has targeted revenues of Rs 500 crore. |
The company is also planning to expand its 40 MW solar cell manufacturing plant in Bangalore to a 100 MW plant over the next few years. The expansion of the plant would be undertaken in two stages. |
Tata BP Solar plans to invest Rs 75 crore and envisages a revenue growth to Rs 1,500 crore by 2009. The expansion will be financed through internal accruals, the company sources said. |