- Inspired from Prime Minister Narendra Modi’s vision on solar energy, SoftBank founder Masayoshi Son’s proposed to produce 20 gigawatts (GW) of solar energy in India .
- The government is now looking to issue a mega global tender packages inviting companies to set up solar power generating capacity of 5-10 GW (5,000-10,000 MW).
- The cabinet secretary has formed an inter-ministerial committee consisting of members from the ministries of finance, industry, power as well as new & renewable energy, to work on the policies, basing upon preconditions that came up in discussions with SoftBank and its Indian partners.
Major issue that came up in discussion are:
- Obtaining encumbrance-free land at 4-5 acres per megawatt. Telangana and Rajasthan governments indicated they would find dedicated land which could also be called solar zones
- What kind assurances will government give, by acting as a guarantor to distribution companies (discoms) ,with regard to payments provide given that poor financial health of discoms.
- Setting exchange rate after examining the possibility of indexing rate for various currencies such as the US dollar, yen and euro where SoftBank wants to have exchange rate indexed to the yen against rupee, looking at rupee’s volatility.