The Government of India is planning to set up two joint ventures to oversee the construction of renewable energy projects in the country, Live Mint reported.
“The oil and renewable energy ministries are working on the proposal, which sees them setting up one JV to oversee large-scale, grid-integrated projects and the other for off-grid projects,” Mint reveals.
The new public sector ventures will b e the JVs between state owned oil sector firms such as Indian Oil (IOC), Bharat Petroleum Hindustan Petroleum Oil and Natural Gas (ONGC), Oil India and Solar Energy of India and the Indian Renewable Energy Development Agency. One of them will be led by ONGC while the other will be led by IOC, the report said.
The money they put in such projects will be considered part of their corporate social responsibility (CSR) contributions. Under India’s new companies’ law, corporate entities are supposed to spend a certain percentage of their profit on CSR, essentially charitable activity.
“The ministry of new and renewable energy resources has the technical expertise. Also, the oil sector, public sector units have large funds available under their corporate social responsibility programs. This will be ploughed towards the new firms,” said Mint quoting a government official.
The new BJP government at the Center is keen to encourage renewable energy investment as part of its National Energy Policy.
“My government will come out with a comprehensive National Energy Policy and focus on development of energy-related infrastructure, human resource and technology,” President Pranab Mukherjee said in his first address to the parliament. “The aim of the government will be to substantially augment electricity generation capacity through judicious mix of conventional and non-conventional sources.”
India, which is dependent on imports to meet its energy demand, has an energy import bill of around $150 billion. This is expected to reach $300 billion by 2030, requiring a $3.6 trillion payout by 2030, according to reports.
India is also exploring options to make it compulsory for conventional power project developers to build renewable capacity at the same location, a move that can provide an impetus to eco-friendly electricity. There is a need to integrate conventional and renewable power generation as India’s overdependence on coal needs to be reversed, Mint said.
editor@greentechlead.com