Panchabuta had mentioned in December last year that, Japan Bank for International Cooperation (JBIC) is looking at providing equity funding to private sector projects in India instead of debt support for public sector entities. The principal Japanese overseas funding agency is also shifting its focus on the Indian market from China following political tensions with its Asian neighbour.
Earlier in February this year, Panchabuta had mentioned that the Japan Bank for International Cooperation (JBIC) that is looking at providing equity funding to private sector projects in India instead of debt support for public sector entities. The JBIC has earlier talked about intention to create a green investment fund not limited to India but mainly for India, with other partners such as the International Finance Corporation.
Japan International Cooperation Agency (JICA) had agreed to give Rs 7,361 crore as a soft loan to India for various infrastructure projects in India. The loan will cover six development projects in the areas of power, transportation, forestation and energy to support India’s efforts to improve its infrastructure.
Reports earlier this month indicated that the State utility has no money to build the necessary infrastructure. TANTRANSCO, the State-owned transmission company has worked out a plan to put up seven sub-stations (four of 400 kV capacity and the rest of 230 kV) and attendant transmission lines.
This, TANTRANSCO reckons, will cost Rs 1,757 crore. Out of this, the sub-station part alone will cost Rs 1,588 crore.
The wind industry has mooted two suggestions to solve the funding problem. The first is for the State Government to press the Centre for a grant (or a soft loan) from the National Clean Energy Fund or alternately to build a public-private-partnership model, under which the private sector could put up the sub-stations under Section 10 (1) of the Electricity Act, 2003.
According to reports,encouraged by greater capacity addition of wind mills in the last two years, the Tamil Nadu has come forward to establish an exclusive corridor for wind power to be transmitted to other States.
The proposed corridor is meant for evacuating 9,000 megawatt (MW). As per the proposal sent to the Union Ministry of New and Renewable Energy (MNRE), dedicated 400-KV (kilo volt) substations, 230-KV substations and associated EHT (extra high tension) lines are to be set up to evacuate wind energy. This will cost approximately Rs. 3,800 crore.
The State has sought financial assistance of the MNRE and at the recent State Power Ministers’ meeting, Electricity Minister
Natham R. Viswanathan called upon Union Power Minister Sushil Kumar Shinde to use his good offices with the MNRE.