Debasish Choudhury
Regional Editor—Asia/Pacific, Global Solar Technology
India gets US $23 billion
investment in solar,
semiconductor projects
With cumulative investment proposals computers and automotive industries. Each $3.23 billion.
received for solar photovoltaic plants in ex- month, for instance, 7-8 million mobile
cess of US $18 billion, the government of subscribers are added to the country’s Technical evaluation committee
India’s semiconductor policy amply proves telecom network. Similarly, last year over Seeing the rush of investment proposals,
the adage “Make hay while the sun shines.” 7.30 million personal computers were the Department of Information Technolo-
sold in India. Public demand came mostly gy, the nodal ministry, has set up an expert
special incentives from government-run projects such as committee for technical evaluation of
The policy announced by the government e-governance, smart ID cards and solar projects to assist the appraisal committee.
last year has received an overwhelming electrification. The technical committee consists of four
response, with 12 prospective players lining to five experts in the latest technologies
up total investment proposals in excess of investment proposals for solar photovoltaic and semiconductor
US $23 billion for semiconductor wafer The country’s largest diversified conglom- wafer fabrication.
fabs and eco-system units over a period of erate, Reliance Industries, has approached The Special Incentive Package Scheme
ten years. These proposals have come as the government with US $4.6 billion plans (SIPS) was notified last year to encourage
a follow-up of the semiconductor policy, to set up a semiconductor wafer fab with investment in semiconductor fabrication
which doles out Special Incentive Package an ATMP facility in India. The Mukesh and other micro and nano technology
Schemes (SIPS). Ambani-led firm has also sent a US $2.9 manufacturing industries. Because it lays
Proposals received are for manufacture billion proposal to build solar photo voltaic emphasis on modern technology, input
of wide variety of items, such as polysilicon, (PV) modules with a capacity of 1 gigawatt. from experts will be critical in the evalu-
single/multi-crystalline ingots, wafers, solar The proposals also include a US $2 billion ation of the projects. The technical and
cells—both silicon and thin film—solar plan from Videocon Industries to make financial groups are expected to be in place
photovoltaic modules (SPV), liquid crystal TFT LCD flat panel and the US $1.5 bil- by the middle of August.
display (LCD) and integrated circuits, such lion plan of Moser Baer PV Technologies
as advanced logic/memory/embedded India for solar PV modules with a capacity project management
system-on-chip including an assembly, test, of 1.3 gigawatts. The government will also form a Project
marking and packaging (ATMP) facility for Signet Solar Inc. wants to build a solar Management Unit (PMU) that will focus
semiconductor devices. PV plant with an investment of US $2.4 on the financial appraisal and look at
Under SIPS, the government would pro- billion, Phoenix Solar looks to build one issues such as financial closure of the
vide an incentive of 20 percent of capital for US $300 million, and Tata BP Solar In- project, debt, equity structure and funding
expenditure during the first 10 years for dia Ltd plans a solar PV unit for US $420 pattern. For this the government is also
the units in Special Economic Zones (SEZ) million. Titan Energy System’s solar PV, considering roping in a global consultancy
and 25 percent of the capital expenditure polysilicon plan includes US $1.47 billion, firm to assist the PMU.
in non-SEZ units. Also, any unit can claim and KSK Energy Ventures’ solar PV project The appraisal committee, which is
incentives in the form of capital subsidy or includes investments of US $800 million. headed by the Additional Secretary,
equity participation by the Indian govern- Other big proposals include Solar Department of IT, would give its recom-
ment as well. Semiconductor’s solar PV plant at US $2.9 mendations to the Government on the
In India, the enormous demand for billion and TF Solar Power’s solar PV plant proposals.
semiconductors came from both the investment at US $587 million. The last
private and public sectors. Private demand proposal received by the government came We hope the encouraging response to the
came from the explosive growth of the from Lanco Solar, who sent a proposal for semiconductor policy, though ‘remarkable’
mobile telecommunications, personal a solar PV, polysilicon plant at a cost of US should not be ‘just exuberance.’
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