In a major decision to boost use of clean energy in India, the union cabinet on Wednesday decided to quintuple solar energy capacity under the National Solar Mission towards achieving 100,000 MW by 2022.
"In an important decision, the Cabinet Committee on Economic Affairs (CCEA) decided that solar power capacity in the country is to go up five times to 1 lakh megawatt by 2022," Telecom Minister Ravi Shankar Prasad told reporters here while briefing them on the cabinet meeting.
"This is a giant step and India will become the biggest producer of solar power in the world," he added.
Describing how the ambitious project had elements like many solar projects and grid-connectivity for roof-top solar power, Prasad said an investment of Rs.600,000 crore is being envisaged till 2022.
"The government of India is providing Rs.15,050 crore as capital subsidy to promote solar capacity addition in the country," Prasad said.
"The ministry of new and renewable energy intends to achieve the target of 100,000 MW with targets under the three schemes of 19,200 MW," the cabinet communique said.
"Apart from this, solar power projects with investment of about Rs.90,000 crore would be developed using bundling mechanism with thermal power," it added.
"Further investment will come from public sector undertakings and independent power producers. State governments have also come out with state specific solar policies to promote solar capacity addition," Prasad said.
The CCEA on Wednesday also approved setting up of over 2,000 MW of grid-connected solar projects on build, own and operate (BOO) basis under the Jawaharlal Nehru National Solar Mission, he added.
Also on Wednesday, the International Finance Corp (IFC), the private financing arm of the World Bank, said it has subscribed to $35 million worth of 10-year non-convertible debentures issued by PTC India Financial Services to boost long-term financing for renewable energy projects in India.
