Waaree Energies Limited has raised Rs 100 crore from Centrum Financial Services Limited through a structured financing deal. The fund will be used by the Mumbai-based alternate energy firm to expand its capacity.
India’s one of the biggest manufactures and supplier of Solar Photovoltaic modules and provider of EPC solutions has a 500 MW module manufacturing plant at Surat in Gujarat.
The Centrum Group made the investment through its non-banking finance arm. The investment comes at a time when the India solar industry is witnessing rapid growth with the favorable policies and government’s inclination toward alternative energy.
The cumulative installed solar capacity in India is nearly 16 GW with an aspirational target of reaching 100 GW by 2022 set by the central government.
The Ministry of New and Renewable Energy (MNRE) recently released concept note on solar PV manufacturing scheme, a scheme to build up manufacturing capacity of solar PV modules, cells, wafers/ ingots and polysilicon in India.
The ministry is proposing a number of subsidies and incentives including direct financial support of more than Rs. 110 billion (~$1.7 billion) for manufacturers to expand and upgrade, a 12000 MW Central Public Sector Undertaking (CPSU) domestic content requirement (DCR) program to create robust domestic demand, an increasing Domestic Content Requirement from modules to polysilicon by year, 30 percent central financial assistance, cheaper loans, a custom duty exemption, and cheaper power.
The ministry is inviting comments and suggestions on the concept note until December 31, 2017. The program aims to strengthen the Make in India campaign, reduce the country’s dependence on foreign manufacturers, and make domestic manufacturers competitive with their international counterparts.