Budget 2014: Solar cos expect an ultra boost from Finance Minister Arun Jaitley

NEW DELHI: Solar power project developers and equipment makers expect Finance Minister Arun Jaitley’s first budget to give a big push to solar energy just as Narendra Modi did in Gujarat when he was chief minister.

They are pegging their hopes on Piyush Goyalwith minister renewable energy, power and coal, who wants to expand UPA government launched Jawaharlal Nehru National Solar Mission. Of the country’s 2,650 mw of installed solar power generation capacity, close to 1,000 mw are located in Gujarat.

Developers expect the Central government to announce concrete steps to take forward the concept of ultra-mega power projects for solar energy.

Also, they want government to exploit country’s solar power potential for electrifying villages and increasing penetration of solar powered pumps for irrigation to cut down subsidies on electricity supplies to the agriculture sector. India is aiming to commission 20,000 mw capacity by 2022 under the Solar Mission, which was launched in January 2010.

“The industry expects Jaitley to allocate Rs 200 crore for Solar Energy Corporation of India to infuse equity in ultra-mega solar power project at Sambhar in Rajasthan.

The move may give boost to six PSUs that have joined hands to set up 4,000 mw ultra-mega solar power project in Rajasthan,” said a promoter of one of the project developing firms. He added that stress on implementation of eight ultramega solar power plants and its integrated Green Energy Corridor Project would be a welcome measure.

Solar power gear makers believe that solar powered water pumps is an answer to burden of subsidies on electricity supplied to the farm sector. “Agriculture that consumes almost one fourth of country's electricity accounts only for 7% revenues for distribution utilities,” sand a power equipment maker.

According to the ministry of new and renewable energy, promotion of solar powered pumps can also give boost to manufacturing sector. Government has already installed close to 13,000 solar pumps and implementing 17,000 more. The equipment maker quoted above stated that government should raise its target to install one lakh solar powered pumps, which may require about 1,200-1,500 mw of solar panels.