Since 2001, Biztree has helped over 12,000,000 entrepreneurs, business owners, executives and managers to start, run and grow their business more efficiently.Our Business-in-a-Box software gives you instant access to our entire collection of 1,800 business and legal document templates.Procurement and consulting firms, which assist with installing solar power plants, will also suffer the ripple effects of this experience.
But what about local investors, trying to be part of make in India?
” said Jitesh Khanna, a businessman with a solar plant of half a megawatt built from his own savings of Rs 3 crore.
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“Big orders of 50 megawatt and above are bagged usually by bigger players.
The likes of us depend for almost 80-90% of revenues on small investors in this upcoming sector,” he said."Fresh projects with RECs are a no-no unless the earlier certificates are exhausted.This scenario will keep out genuine investors and their projects from getting any financial support from the government,” said Anish De, Partner (Infrastructure and Government Services) at global consulting firm KPMG.So far 500 MW, which is about a sixth of India’s total capacity, is commissioned under the REC mechanism, according to Bridge To India.On Monday, the energy regulator CERC proposed to revise the price of solar RECs downwards to Rs 3,500-5,800 per megawatt (MW) from Rs 9,300-13,400 per megawatt to “address the mismatch” between prevailing REC rate and solar energy prices, which have fallen over the past two years.Industry players say this reduction in solar REC rate may now lead to 30% sales of the certificates, which could help cover interest cost of investors, but nothing more.In addition, no small entrepreneurs will be encouraged anymore to venture into solar business.Meanwhile, Lohia Group and Bikaji Foods are among known companies, which have shelved their solar plans due to problems with their current installations under REC mechanism. India is running in the top solar power user in the world.Also, most state discoms are bankrupt, so why would they buy these?Sadly, no one has taken responsibility for this mechanism,” said Jasmeet Khurana, senior manager (Consulting) at market intelligence firm Bridge To India.