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Solar power stocks rally upto 11% on Indo-US partnership on clean energy
NEW DELHI: Companies with exposure to the solar powersegment rallied up to 11 per cent in tarde on Tuesday, after US President Barack Obama and Prime Minister Narendra Modi pledged to collaborate in the area of clean energy and combat climate change.
A team of senior US officials and executives from funding agencies, ministries and companies will interact with Indian officials from the finance ministry, Reserve Bank of India and other agencies to help India meet its ambitious target of adding 1 lakh megawatt of clean energy, which is 40% of the country's total generation capacity now, at a cost of Rs 6 lakh crore, said an ET report.
Officials said Power, Coal & Renewable Energy Minister Piyush Goyal is determined to ensure that new renewable capacity is built with innovative and sustainable funding, not subsidies and handouts.
Already, the Adani Group and New York-listed SunEdison have announced plans to invest $4 billion to set up India's biggest solar equipment plant, added the report.
The solar energy sector has so far imported huge amounts of low-cost Chinese equipment, drawing criticism from local manufacturers.
"There will be more such investments in India. The government is determined to attract companies and make it easier for them to do business in the country. India already allows 100% FDI in renewable energy, and encourages technology transfer," ET reported quoting a government official.
India offers several incentives for clean energy. Distribution companies are mandated to source a part of their electricity from clean sources under the system of 'renewable purchase obligation'.