Indian firms push for renewable energy investments

Government incentives have persuaded several Indian groups are all making a concerted push into renewables.

For example, it now costs Rs 8 crore to set up 1 mw of solar capacity, against Rs 20 crore five years ago. As solar and wind power, and, to a lesser extent, options such as biogas, reach close to 'grid parity' — where they cost as much as conventional sources like thermal,investments from large corporations will only increase, says K Subramanya, who was heading the Tatas' solar venture until last year.

The list includes both the Ambani brothers, the Tatas and the Mahindras, and smaller entities such as Welspun.

The Tata Group, an early entrant, wants to increase its renewable energy capacity to 2,000 mw in the next five years from 852 mw now, Rahul Shah, head of business development, Tata PowerBSE -0.95 % told Bloomberg in an interview published on February 5.

The Tata Group, an early entrant, wants to increase its renewable energy capacity to 2,000 mw in the next five years from 852 mw now, Rahul Shah, head of business development, Tata PowerBSE -0.42 % told Bloomberg in an interview published on February 5.

It may merge its renewable energy business with Green Infra, a IDFC-funded company and get other group firms such as Tata Capital's PE unit and Tata Communications to invest in this business. The Mahindra Group has a joint venture with Kiran Energy, one of whose promoters is expat Alan Rosling, the former executive director of Tata Sons, and which has raised $80 million in private equity funding.

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