$430 million to be put into clean energy development by India’s biggest oil marketing company
India’s nuclear and renewable energy fields will see a great financial boost, as the nation’s Indian Oil Corp. looks to invest an estimated $430 million into the niche over the coming 5 years.
The investment is no great surprise, as the clean energy trend has long since attracted attention from the nation’s domestic investors. The company has set up extensive plans to further India’s wind and solar energy projects, as well as its tidal energy plans. The Indo-US nuclear relationship was also a lucrative and profitable aspect that attracted the firm to the cause.
Though the company has already been venturing into the wind power niche, it now plans to invest enough money into it to begin generating wind energy ready for commercial use. Prominent plans of erecting wind and solar plants around the country are already well underway, and incentives for future interested parties have also been set in place.
More than a few Indian oil firms are nor seeking alternatives that are more cost-effective, and the incentives set up in this project may very well lure them to the ambitious undertaking. With the country’s plans of a 20,000 MW solar project to come in 2022, additional solar plants are in the works by companies looking to come in on the unravelling deal. This is certainly a great chance for oil companies to make up for the losses their industry has sustained in the past few years.
The local government has also relinquished subsidies over some of its production, leaving both private and public investors to fully benefit from participating in the massive project. The public sector especially is looking to invest into energies that will be less costly and more accessible that conventional fuels like coal and petroleum.
Tax breaks and other incentives will be offered by the company and the Indian government in order to attract all potential investors. The country plans on drastically upping its solar power production, with the first phase of the project bringing its total to 1,000 MW compared to the meagre 12 MW that the nation generates at this time.
Other clean energy project will enjoy the same incentives, and wind power is quickly emerging as the favourite amongst green energy investors. Wind power projects have been unravelling much faster than solar power in the country, and with these projects already posting profit, investors are eager to join the party, and reap the benefits.
Sparking domestic interest in green energy is certainly a wise move on the part of the Indian government. The nation is rapidly pushing itself to the forefronts of the clean energy race, and with the projects listed above being only the first breaths of an otherwise booming local industry, the future looks bright for the healthy trend in the country. With many state-run companies seeking to make up for the losses they experienced over the past years marred by the recession, these projects are bound to succeed.