You are here

Japanese bank signs off 200 MW Indian solar plant

India’s plans for an eightfold expansion in sun-powered capacity got a boost this week after a Japanese bank and firms agreed to build a major Indian solar-powered project

India plans to radically expand its solar power capacity to meet surging energy demand and a falling output of coal and gas-based power

A Japanese banking holding giant will lead a project to build a solar plant in India capable of generating up to 200 megawatts in energy capacity.

Mizuho Financial Group Inc., along with consortium of Japanese companies, will build the Gujarat-based facility at cost of 30 billion yen (USD 325 million), Bloomberg reported.

Mizuho’s corporate lending unit signed a memorandum of understanding with Gujarat’s government in January.

Clean-energy investors are looking to India as government incentives such as lower tax rates and cheaper raw materials drive down costs. The country, seeking to cut severe power shortages as coal and gas reserves deplete, released a draft policy in December targeting 9,000 MW of grid-connected solar plants by 2017, more than eight times its current capacity.

Kyocera Corp. may supply solar panels to the Mizuho project, the Nikkei newspaper reported earlier.

Several companies are considering taking part in plans. The plant’s capacity may be expanded to 2,200 MW.