SoftBank Committed another USD 350 Million Investment in Solar Projects in India

Japanese conglomerate SoftBank has been very confident in India’s infrastructure development and its internet industry in the last few years. This leading Japanese Telecom company and Internet giant is very keen to invest in country’s solar energy sector and internet companies; it has committed another investment of USD 10 billion in next 5-10 years in India.

SoftBank’s Chief Executive Masayoshi Son announced this investment after meeting with Indian Finance Minister Mr. Arun Jaitley who went to Japan to meet investors to bring investment in the country.

Mr. Son told PTI, his US based Sprint Corp will invest USD 350 million in solar projects in India, SoftBank is having a stake in this US company. SoftBank has already invested USD 2 billion in the country and eager to invest further.

Mr. Masayoshi Son said, “India has a great future, we are interested in investing in Internet companies and also in solar energy, we would make strong commitments,” PTI reported.

Many international companies including SoftBank are very bullish on India’s renewable energy sector. SoftBank has already invested USD 20 billion last year in June in solar energy projects in a joint venture with Bharti Enterprises and Taiwan based Foxconn to generate 20 Gigawatts (GW) of electricity through solar energy.

Another foreign company, CLP India, which is the local arm of Hong Kong based energy firm CLP Holdings Ltd, told Live Mint recently that company is planning to invest USD 1 billion for setting up over 1 GW of solar power capacity for next 3-5 years in India.

During the first Renewable Energy Global Investors Meet (RE-Invest) held last year, World’s largest renewable energy company SunEdison announced to reduce the cost of renewable energy and develop over 15 GW of wind and solar projects in India by 2022.

The government of India has set the target of 175 GW of renewable energy by 2022 to meet the energy demand of the country. This includes 100 GW from solar, 60 GW from wind power, 10 GW from biomass power and 5 GW from small hydro power.

Last year in July, another US based Energy company, Hilliard Energy had committed to invest USD 600 million to generate 650 MW through Solar and Wind in Ananthapur district of Andhra Pradesh.

Country needs around USD 200 billion to achieve its target to install 100 GW of Solar power and 60 GW of wind power by 2022.

Rating agency, India Ratings & Research (Ind-Ra) has maintained a stable outlook for solar energy sector for FY2016-17 in its ‘FY17 Credit Outlook’ report, it said, “Ongoing emphasis and policy actions towards the achievement of 100GW (Solar power) target by FY22 could drive capacity additions in the coming year.”

Source: Information has been obtained from PTI, Live Mint, IBEF, India Ratings & Research

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