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Bihar Solar Energy Policy, Solar Projects and Solar Business Opportunities in Bihar 

Latest News

Bihar unveils new energy policy It has been made to attract investment in power generation from solar and other non-conventional sources of energy

Patna: The Bihar government has announced new energy policy to attract capital investments in producing energy through non-conventional sources.

Bihar Renewable Energy Development Agency (BREDA) Director Manish Kumar said under the new policy —christened as New Energy Policy 2011— the state government has allowed many concessions to the investors on this score.

He said investors from abroad and in the country have shown their interest in producing energy and have submitted their proposals to the government.

Some of the investors have already started work to establish power houses in Kaimur, Dhobhi, Barachatti, Gaya, Gopalganj, Khagaria, Madhubani, Chhapra, Buxar, Chakiya, Ramnagar, Katoria and Banka districts, he said.

The companies started work after seeking permission from Bihar Industrial Promotion Board, which allowed setting up electricity producing units in different parts of the state.

Sources in the Energy Department stated that the Chaintey Partners of New York has agreed to set up power project in Kaimur to produce 10MW electricity at the cost of Rs 153 crore, while Chaucer Capital of London will set up power plant at Dobhi, Barachatti and Gaya at the cost of Rs 328 crore to generate 20 MW power.

Clailro Energy of Delhi will invest Rs 160 crore to produce 10 MW of electricity, at Gopalganj and Khagaria, the Response Renewable, Kolkata will produce 25MW at the cost of Rs 425 crore at Madhubani, Buxar and Chhapra, Moserbaer Clean energy, Delhi has invested Rs 1380 crore to generate 20, 25, 40 MW from its plants at Chakiya, Ramnagar, Katoriya and Banka respectively.

“All these companies and investors have started their leg work to set up their power plants at all these places and Bihar government expect that power generation from solar energy and other non-conventional sources of energy would start in next two years,” Kumar said.

source : http://www.igovernment.in/site/bihar-unveils-new-energy-policy

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Bihar Solar Energy Policy, Solar Projects and Solar Business Opportunities in Bihar


This blog consists of three parts 


Part I deals with latest solar energy news from Bihar

 

Part II deals mostly with the Government regulations and guidelines for solar energy in Bihar

 

Part III deals with solar energy business opportunities, solar energy business strategy, and solar energy investment required for different types of businesses all catering to the Private sector from large corporates to small medium ones. 


Part I

 

Latest News – Bihar Solar Energy

 

 

 

Part II

Solar irradiation in Bihar

Demographics of Bihar

BREDA

Bihar renewable energy policy

Solar power projects in Bihar

 

 

Part III

 

The solar energy business potential in Bihar and Business opportunities in Bihar

 

 

Solar irradiation in Bihar:


 

 

Solar irradiation data of Bihar cities monthwise:

 

City

Jan

Feb

Mar

Apr

May

Jun

July

Aug

Sep

Oct

Nov

Dec

Avg

Bhagalpur

4.13

5.26

6.2

6.57

6.48

5.36

4.37

4.33

4.06

4.82

4.57

4.07

5.02

Bihar Sharif

4.06

5.21

6.19

6.81

6.87

5.71

4.55

4.54

4.37

4.92

4.57

3.97

5.15

Darbhanga

3.95

5.21

6.32

6.84

7.04

5.85

4.61

4.7

4.45

5.03

4.61

3.93

5.21

Gaya

4.04

5.01

5.69

6.21

6.29

5.19

4.36

4.21

4.2

4.53

4.27

3.87

4.82

Munger

4.08

5.25

6.2

6.71

6.71

5.55

4.47

4.44

4.18

4.86

4.56

3.97

5.08

Muzaffarpur

3.95

5.21

6.32

6.84

7.04

5.85

4.61

4.7

4.45

5.03

4.61

3.93

5.21

Patna

4.06

5.21

6.19

6.81

6.87

5.71

4.55

4.54

4.37

4.92

4.57

3.97

5.15

Solar irradiation measured in kWh/m2/day onto a horizontal surface

 

Bihar Demographics:

Bihar is the 12th largest state in terms of geographical size at 38,202 sq mi (94,163 km²) and 3rd largest by population with the third most populated state of India. Nearly 85% of Bihar's population lives in rural areas.

Bihar is located between 21°-58'-10" N ~ 27°-31'-15" N latitude and between 83°-19'-50" E ~ 88°-17'-40" E longitude. Its average elevation above sea level is 173 feet (53 m).

 

Bihar Renewable Energy Development Agency (BREDA):

BREDA has been established to promote development of schemes on non-conventional energy sources. It has been nominates as nodal agency to carry out the remote village electrification programme. The state Govt. provides plan funds to BREDA for expenditure on subsidies for the schemes and also for the expenditures on establishment.

BREDA has been implementing programme for schemes of SPV systems of lanterns/home lighting systems/street lighting systems. Under the Border Area Development Programme, BREDA has implemented a scheme of solar street lighting system in 40 villages along the international border.

 

Bihar renewable energy policy:

This policy is known as “Bihar policy for promotion of New and Renewable Energy Sources 2011”.

This policy will be applicable to all new and renewable energy projects. The policy shall be applicable for any industry, institution private agency, partnership firm, consortia, Panchayat Raj institutions, urban local bodies, co-operative or registered society desirous of installing and generating electricity from new and renewable energy sources.

http://energy.bih.nic.in/docs/REP-2011-English.pdf

 

 

Solar Power Projects in Bihar:

Bihar Renewable Energy Development Agency (BREDA) has been implementing programme of non-conventional energy sources for schemes are bio-gas development, SPV systems of lanterns/Home lighting systems/Street lighting systems, and wind mills. Under the Border Area Development Programme, BREDA has implemented a scheme of solar street lighting system in 40 villages along the international border.

Determination of Generic Levelised Generation Tariff under the Regulations Bihar Electricity Regulatory Commission (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010.

The cost parameters as specified in the “Bihar Electricity Regulatory Commission (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010” was considered by the Commission to determine the generic levelised tariff for power generated from solar PV, Rooftop Solar PV and small solar power plants

Cost parameters considered by commission for levelised tariff determination:

Capital cost (Rs. Crores/MW) – 16.90

Capacity utilization factor – 19%

Useful life /Life of the machine - 25 yrs.

Debt: equity ratio - 70:30

Loan repayment period - 10 yrs.

Interest on loan - 13.39%

Interest on Working Capital - 12.89%

O&M expenses - Rs 9.51 lakhs per MW with annual escalation of 5.72%

Depreciation - 1 to 10 yrs – 7%, 11 to 25 yrs – 1.33%

Residual value - 10% of capital cost

Return on equity (pre-tax) - 19% - for first 10 yrs, 24% - from 11th yr to 25 yr

The generic levelised tariffs determined for above mentioned Solar PV power projects based on the capital cost and other norms applicable for the projects commissioned in the year 2010-11 on or after the date of notification of the “Bihar Electricity Regulatory Commission (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010”, shall be applicable for such projects commissioned during March 31, 2013 and shall be valid for a tariff period of 25 years from the Commercial Operation Date (COD).

The generic levelised tariff shall be as:

Solar PV power projects including Rooftop Solar PV and Small Solar Power Projects – Levelised tariff (17.91Rs./Kwh), Levelised benefit of accelerated depreciation of availed (2.96Rs./Kwh), Net levelised tariff after adjustment for accelerated depreciation (14.95Rs./Kwh)

Levelised tariff for solar thermal power projects:

The cost parameters as specified in the “Bihar Electricity Regulatory Commission (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010” considered by the Commission to determine the generic levelised tariff for power generated from Solar Thermal Power Project are summarized below:

Cost parameters considered by commission for levelised tariff determination:

Capital cost (Rs Crores/MW) - 15.30

Capacity utilization factor – 23%

Auxiliary consumption - 10%

Useful life /Life of the machine - 25 yrs.

Debt: equity ratio - 10 yrs.

Interest on loan - 13.39%

Interest on Working Capital - 12.89%

O&M Expenses - Rs 13.74 lakhs per MW with annual escalation of 5.72%

Depreciation - 1 to 10 yrs – 7%, 11 to 25 yrs – 1.33%

Residual value - 10% of capital cost

Return on equity (pre-tax) - 19% - for first 10 yrs, 24% - from 11th yr to 25 yr

The generic levelised tariffs determined for Solar thermal power projects based on the capital cost and other norms applicable for the projects commissioned in the year 2010-11 on or after the date of notification of the “Bihar Electricity Regulatory Commission (Terms and Conditions for Tariff Determination from Solar Energy Sources) Regulations, 2010”, shall be applicable for such projects commissioned during the control period i.e. upto March 31, 2013 and shall be valid for a tariff period of 25 years from the Commercial Operation Date (COD).

The generic levelised tariff shall be as under:

Solar thermal power projects – Levelised tariff (15.31Rs./Kwh), Levelised benefit of accelerated depreciation if availed (2.46 Rs. /Kwh), Net levelised tariff after adjustment for accelerated depreciation (12.85 Rs. /Kwh)

http://www.berc.co.in/media/Other%20Order/Generic%20Levelised%20Generation%20Tariff-Order.pdf

"I know people take solar energy as a joke but I will strictly implement it here," said Nitish, Chief Minister, Bihar

http://articles.timesofindia.indiatimes.com/2011-05-09/patna/29524409_1_solar-energy-solar-power-system-anne-marg 

 

Bihar Renewable Energy Development Agency

3rd Floor, Sona Bhawan,

Birchandra Patel Marg,

Patna-800 001

Tel- 0612-2233572/2228734

http://www.sdabeebreda.com/sda.htm

 

Energy Department, Govt. of Bihar

http://energy.bih.nic.in/

Key Contacts:

Secretary, Energy Dept. - Tel: (0612)-2217412. Fax: 2232852. E-Mail: energy-bih@nic.in

Additional Secretary, Energy Dept. - Tel: (0612)-2222968. Fax: (0612)-2232852.

Director, BREDA - Tel: (0612)-2228734. Fax: (0612)-2233572.

Chairman, Bihar State Electricity Board - Tel: (0612)-2225036. Fax: 2222968. 

Website: http://www.bseb.org

CMD, BHPC - Tel: (0612)-2224069. Fax: 2227692. Website: http://www.bshpcltd.com

 

Part III



Solar Business Opportunities in Bihar:



The Solar business opportunities mentioned below are not specific to Bihar. They are industry specific opportunities. 



Polysilicon manufacturing



Polysilicon is used to manufacture crystalline wafers. Around a quarter of the cost of a Crystalline module goes just for polysilicon.



The Ministry is providing soft loan at 5% annual interest rate through IREDA for setting up manufacturing facilities for manufacture of poly silicon material, silicon ingots and wafers, solar cells or integrated solar cell-module plants. No soft loan is available for setting up manufacturing unit for module manufacture or PV system manufacture. The proposals are considered by IREDA as per their lending and project appraisal norms. The details of the scheme are available with IREDA.  

http://www.mnre.gov.in/spv-fin.htm



Type of entrepreneurs/ investors who can benefit - Entrepreneurs keen on building up capital intensive manufacturing facilities for an emerging market. The industry is dominated by a few companies that supply around 90% of the total polysilicon market. Some of the prominent companies are Hemlock, OCI, Wacker Chemie Tokuyama, REC (subsidiary SGS and ASiMI), and MEMC.

 

Scale of investment - Typical investments of $500 million - $1 billion for building a polysilicon production plant.



High R&D or commodity manufacturing? - Commodity manufacturing



Bottlenecks/threats - High capital requirements, high energy input requirements and long-term supply contracts could be deterrents to new entrants.

 

Competition - The industry is dominated by a few companies that supply around 90% of the total polysilicon market. Some of the prominent companies are Hemlock, OCI, Wacker Chemie Tokuyama, REC (subsidiary SGS and ASiMI), and MEMC



Market size - The world market of polysilicon has been growing 30-40% annually since 2004, primarily from the growth in solar PV industry. The market size of the solar cell polycrystalline silicon market in 2009 was $5.13 billion.



Supply and demand - Following undersupply since past few years, polysilicon production capacity entered a fast-growth phase in 2009, which resulted in an oversupply situation, in response to increase in production capacity and growth in demand from the end markets. It is forecasted that the demand for polysilicon will continue to increase at more than ten percent for the period 2010 to 2012. Polysilicon oversupply will also trigger a long term decline in its prices, which peaked to the highest levels in 2008 in response to its supply shortage.

 

Indian scenario - Companies such as Lanco, Bhaskar Solar, Tata BP Solar and Acharya are reportedly setting up polysilicon manufacturing plants in India, though these are pretty much early days for polysilicon in India.

 

It is not advisable to enter into this market at present. That is why I have not even updated some of the information given above. Everyone needs to know that Polysilicon manufacture is an opportunity for those in the solar industry.

 

It is meant now, for those who are already in the business.

 

But the older companies will be able to keep their selling, transporting, costs to the least. 

 

The prices are falling, efficiencies are increasing, machineries getting outdated, and thus it is a dynamic industry. 

 

Ingot and wafer manufacturing



The process of melting polysilicon into ingots and subsequently cutting them into wafers is wedged between polysilicon production and cell manufacturing.

 

Yet, it is a distinct process that does not require physical proximity to upstream or downstream processing. Consequently, some companies specialize in just doing that. Typically, ingot and wafer manufacturing are done by the same company.



Type of entrepreneurs /investors who can benefit - Companies that have been operating in metal cutting and finishing, abrasives and related industries could be ideally suited to enter this segment.



This too is avoidable. 

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Solar Cell Manufacturing:



Cell manufacturing involves creating the all-important pn-junction, coating and layering. It is an important step in the value chain that is responsible for about 15% of a solar PV module cost and it is here where significant technical differentiation is created.

Avoidable 

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Crystalline Cell Manufacturing:



Type of entrepreneurs / investors who can benefit - Ingot and wafer manufacturers who are keen on forward integration can exploit this opportunity.



Scale of investment - Medium-Large. A rule of thumb guide to the capital investment in building a solar cell plant is US$1-1.25 million/MW for crystalline silicon and US$ 2 million/MW or more for thin films. The minimum economical size for a solar cell factory is about 20 MW.

 

Avoidable

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Thin-film Solar Cell Manufacturing



Manufacturing thin-film modules comprises depositing photovoltaic material on a substrate, structuring it into cells to form an electric circuit and wire and frame it depending on application. The key suppliers for the thin-film industry are chemical companies that produce high-purity metals such as CdTe, GaAs etc. The supply chain is less constrained than that for polysilicon (used in crystalline solar) and therefore much more reliable. This industry experiences a diverse mix of big-hitters (Sharp), start-up companies and universities. Companies with a long-term vision should start investing in this field.



Type of entrepreneurs / investors who can benefit - Chemical companies that produce high-purity metals such as CdTe, GaAs are in a good position to exploit this opportunity. Glass manufacturers are also in a good position to exploit this opportunity. Equipment firms that have traditionally supplied printing machinery or manufacturing equipment to the semiconductor and display industry see the burgeoning thin film industry as a potentially lucrative market, especially as their hardware can often be easily adapted to manufacture thin film cells and panels. At the same time, these equipment manufacturers are not finding it that easy to enter the TFPV space because module manufacturers are choosing to design and build proprietary equipment rather than buy it in.

 

Scale of investment - This industry experiences a diverse mix of big-hitters (Sharp), start-up companies and universities. A rule of thumb guide to the capital investment in building a solar cell plant is US$1-1.25 million/MW for crystalline silicon and US$ 2 million/MW or more for thin films. The minimum economical size for a solar cell factory is about 20 MW.

 

High R&D or commodity manufacturing? - Opportunities exist for R&D and innovation in this exciting sector. Prominent segments where significant innovation possibilities exist are: efficiency, new thin film materials, design and process.

 

Bottlenecks/threats/barriers - For development and small-scale production, there are few barriers, as companies like Aja International specialize in providing small-scale sputtering equipment. However, when scale becomes important, access to capital might become a barrier.

 

Competition - This is a very dynamic segment with lots of startup companies, some venture-funded. There are also a number of companies that also produce crystalline technologies. Those companies tend to be in the amorphous silicon thin-film segment. The organic photovoltaics segment is mostly covered by research institutes rather than private companies.

 

Market size - The production volume has increased steadily as 165MW in 2007 and 357 MW in 2008. The share of thin films is expected to increase significantly and expected to reach about 25% of total in 2013. (EPIA data).

 

Supply and demand - The thin film solar cell production reached a consolidated figure of 1.68 GW in 2009 out of the total 3.58 GW capacity available, indicating that there is some amount of surplus capacity. However, the demand supply gap could look very different in future with enhanced offtake of thin film world over.

 

Indian scenario - There are only a few Indian companies such as Moser Baer and HHV Solar that make thin film solar cells. A few others such as Kirloskar are also exploring this field.



First solar, Abound solar, GE's Primestar etc will soon find inroads into India.

CIGS, CdTe and amorphous silicon a-si are the three types.

Worthwhile pursuing opportunity



First solar, Abound Solar, Primestar of GE are the companies to associate with.

It is a difficult manufacturing process. 

You may also want to study the below given not yet proven cos.

Miasole, (counselled by Intel)

Heliovolt, 

Nanosolar,

SoloPower

Stion

Solar frontier,

Sulfurcell, 

AQT

Telio,

Global solar

ISET

Odersun,

Wuerth Solar etc 

 

All the above are CIGS manufacturers. Some of them are startups and you need to study their production process and record well.



May make sense to tie up with any one of them, who is doing well, now, than going in of your own manufacturing. 



CdTe thin film companies are CdTe: Abound Solar, Primestar, Solexant, Bloo Solar, Willard and Kelsey, Xunlight26



a-Si - Sharp solar 



Ascent solar tipped to have the highest upside in the stock market is another company to watch out for.

 

As per the JNNSM guidelines, thin film can be imported for its Phase I Batch I and II as there are no manufacturers.

 

Some of the thin films have been found pretty efficient in India. Viz First Solar.



To repeat 

Worthwhile pursuing opportunity.  Required deep pockets. Global play.

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CSP 



CSP is an umbrella term for CSTP and CPV.

That is the way I am taking it. 

The purists may not agree.

For the purpose of this note, it is fine to define CSP as above.



In concentrating PV (CPV), concentrators use optics to concentrate sunlight onto a small area of solar cells, thus allowing for a decrease in cell size. Because a CPV module needs less cell material than a traditional PV module, it is cost effective to use higher quality cells to increase efficiency. However, the technology makes up a very small portion of the solar industry.

 

CPV system manufacturers assemble the solar cells, concentrator unit and heat sink to form a module. Where applicable, companies will either integrate a tracking device or offer it as a separate product for free-standing module installations.

 

CPV is currently quite R&D driven, with a number of innovations taking place in this area. The types of entrepreneurs who will find this domain suitable are those who have scientific R&D backgrounds and have access to funds for significant R&D investments.



As a rather recent technology (being commercialized), there are new entrants, many of whom are venture funded. Some of the prominent ones are: Amonix (California), SolFocu (California), GreenVolts (San Francisco), Concentrix Solar (Germany) etc.



CSP



Interesting opportunity area for large companies. Very soon India will need utility scale solar energy plants with molten salt so that they can provide electricity 24 hours. As per the Renewables Purchase Obligation, RPO, all utilities are expected to buy 0.25 % every year and that is a considerable amount for each state. 

 

This is the only solar technology that allows for storage naturally. Since the solar radiation is indirectly converted to electricity, there is an opportunity to store the collected heat in molten salts, before converting the heat to electricity.

 

The cost of setting up the molten salt system is exorbitant.



The common understanding is CSP is cheaper than PV due to the use of off-the-shelf, commodity components like mirrors, turbine, etc. It also was known to have higher efficiencies in solar to electricity conversion (~15%).



Due to the global oversupply in PV panels and reduced demand due to the financial crisis, the prices of the panels have drastically reduced. On the efficiency front, the PV at 15-20% efficiency is typical now, further adding the cost parity. The result is that PV is now at parity or close to parity with CSP. One western region utility claimed that they pay 0.16 c/Kwh for CSP and 0.14 c/Kwh for PV. This difference was attributed to the timing of the PPAs; generally the difference is not significant anymore.

 

A CSP project in USA has shifted to PV. Actually it is world's largest project that has shifted from CSP to PV

 

http://www.eai.in/club/users/Nithya/blogs/7417

 

BHEL has tied up with a CSP major. 

 

The ability to provide “firm power” is a clear advantage of CSP at this time. Due to the output being provided by a steam turbine (and not directly from the field) and a ~2 hour built-in buffer in the trough technology, small variations in the in insolation do not affect the turbine output – like a passing cloud.



CSP will also be needed for many townships, industrial estates etc 



Large companies which want to take less risk and are happy with predictable rewards can go for this. 



Here are a list of CSP companies with a note for each of them. You may want to work with one of the best, than go it alone.

 

Abengoa SAAcciona EnergiaAcquasolAmonixAora, Archimede Solar EnergyArxiel VenturesAusra Inc.Bright Source EnergyCapital Sun GroupCircadian SolarConcentrix SolarCool Earth SolarEnelEnter-t GlobalEPURONeSolar, Fichtner Solar GmbHFlabeg, FlagsolFPL EnergyGiuseppe FarinaGlobal Warming Solutions,Green & Gold EnergyGreenVoltsHelioDynamicsHelioFocus, Hiro Energy Tech LimitedHuiYin-GroupIndustrial Solar Technology Corp.Infinia CorporationInternational Automated SystemsISFOCIsofotonKraftenlagen MunchenKernenergienLauren Engineers & ConstructorsMAN FerrostaalMENA CleantechMenova Energy Inc.Microsharp Corporation LimitedMubadala Development CompanyM+W Zander GmbHNaanovo EnergyNew power IndiaNokraschy EngineeringNOVATEC BioSol AG,  Nur EnergieOpen Energy CorporationPSE AGPyron Solar Inc.Renovalia EnergySchlaich Bergermann und PartnerSchott Solar Thermal / Schott UKSenior BerghöferSolar XXISkyFuel Inc,  Silicon CPVSolar EuromedSolar & Environmental Technologies CorporationSolarReserveSolFocus,Soliant EnergySolar Heat and Power IncSolargenix EnergySolar Millennium AGSolar Power Group , SolarsphereSolar SystemsSolar Trust of America LLCSolel Solar SystemsSolFocusSolucarSopogy,SunBorne EnergySunpower Sunstroom Energy LtdSustainable Resources Inc.Stirling Energy SystemsTorresol EnergyTsugino Co., Whitfield SolarWizard Power Pty LtdWorley Parsons 

 

In my ranking, following are the companies to look upto Bright source Energy , Solar Millennium , Abengoa , Areva , Siemens, Acciona, SolarReserve, eSolar, Schott, etc., 

 

But then there is no clear basis for my selection. 



Viability / grid parity is a question as far as CSP is concerned. It will take a little longer than PV.

 

Spain’s track record sends an encouraging message to newer entrants in the CSP market from India to South Africa and beyond. When Spain started building plants in 2007, the first plants such as PS10 and Andasol 1 were highly dependent on imports of foreign supplies, requiring at least 50% of the requisite parts to be sourced from abroad. The plants that went online in 2010 were built with around 80% of components from Spanish companies. 

 

If in doubt, read more http://www.csptoday.com/csp-markets-report/

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Solar Module Production - Solar PV module manufacturing involves assembling the cells into a module to form an electric circuit. This is the last manufacturing step before it is distributed to wholesalers.



Indian scenario - There are about 35 companies in India that produce crystalline solar modules.



Avoidable. Dont enter now.

The market is crowded. 



China is doing predatory pricing. It will swallow even local manufacturers, if they are not quick. 

 

You may want to talk to some of the present module manufacturers in India:

 

Access Solar Ltd.
http://www.accesssolar.co.in/home.html

 

Ajit Solar Pvt Ltd.

http://www.ajitsolar.com/ 

 

Alpex Solar
http://alpexsolar.com/

Ammini Group
http://www.ammini.com/

Amro Technology Pvt Ltd.
http://www.amrotechnology.com/profile.html

 

Andromeda Energy Technologies Ltd.
http://www.andromedasolar.com/

 

Bharat Heavy Electricals Ltd. (BHEL)
http://www.bhel.com/home.php

 

Central Electronics Limited (CEL)
http://www.celindia.co.in/

 

Chemtrols Solar Pvt. Ltd.
http://www.chemtrolssolar.com/

 

Ecosol Power Pvt. Ltd
http://ecosolpower.com/home.html

 

ELECTROMAC Solar Systems PVT. LTD
http://www.enf.cn/pv/12787a.html

 

Emmvee Photovoltaic
http://www.emmveesolar.com/

 

Empire Photovoltaic Systems PVT Ltd



GreenBrilliance Energy Pvt. Ltd.
http://www.greenbrilliance.com/

 

HHV Solar Technologies Pvt. Ltd.
http://www.hhvsolar.com/

 

ICOMM Tele Limited
http://www.icommtele.com/

 

India Solar Solutions
http://www.solarindiasolutions.com/

 

KCP Solar Industry
http://www.kcpsolar.com/

 

Kotak Urja Pvt. Ltd.
http://www.kotakurja.com/

 

LANCO
http://www.lancogroup.com/

 

Maharishi Solar Technology Pvt. Ltd.
http://www.maharishisolar.com/

 

Microsun
http://www.microsuntech.com/

 

Modern Solar
http://www.modernsolar.com.au/index.aspx

 

Moser Baer Photo Voltaic Limited
http://www.moserbaersolar.com/

 

Neety Euro-Asia Solar Energy
http://www.nease.in/

 

Novergy Energy Solutions Pvt. Ltd.
http://www.novergy.co.in/

 

Photon Energy System Ltd.
http://www.photonsolar.com/

 

PHOTONIX Solar Private Limited
http://www.photonixsolar.com/

 

PLG Power Limited
http://www.plgpower.com/

 

Premier Solar Systems Pvt Ltd
http://www.premiersolarsystems.com/

 

PV Power Technologies Pvt. Ltd.
http://www.pvpowertech.com/

 

Rajasthan Electronics & Instruments Ltd. (REIL)
http://www.reiljp.com/

 

Rashmi Industries
http://www.rashmisolar.com/

 

Reliance Solar Group
http://www.relsolar.com/

 

SahajSolar Power Pvt Ltd.
http://www.enf.cn/pv/13208c.html

 

Shreyansh Electronics
http://shreyanshindia.com/

 

Solar Semiconductor Pvt. Ltd.
http://www.solarsemiconductor.com/asia/index.html

 

Solkar Solar Industry Limited

http://www.solkar.in/index.php

 

Sunrise Technology
http://www.sunrisetechnologies.com/

 

Sova Power

http://sovasolar.com/

 

Sun Energy Systems
http://www.sunenergysystems.in/home.htm

 

Sun Solar Techno Limited

http://sunsolartechno.com/

 

Sungrace Energy Solutions (P) Ltd
http://sungrace.net/

 

Vksolar
http://www.indiamart.com/vksolar/

 

Surana Ventures Ltd.
http://www.suranaventures.com/

 

Synergy Renewable Energy Pvt. Ltd
http://www.group-synergy.net/

 

Tata BP Solar India Ltd.
http://www.tatabpsolar.com/

 

Titan Energy Systems Ltd.
http://www.titansolar.com/titan/

 

Topsun Energy Ltd.
http://www.topsunenergy.com/

 

Udhaya Energy Photovoltaics (P) Ltd. (UPV Solar)
http://www.upvsolar.com/

 

Udhaya Semiconductors Limited (KL Solar Company Pvt. Ltd)
http://www.uslsolar.com/

 

Waaree Energies Pvt. Ltd.
http://www.waareeenergies.com/

 

Websol Energy Systems Ltd.
http://www.webelsolar.com/

 

XL Telecom & Energy Ltd 

http://www.xlenergy.co/



If you are already a module manufacturer, it makes sense for you to enter power generation. 

 

And to enter Rooftop solar. 

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Other Opportunities in Solar energy in India and Bihar are



*Ground Zero opportunity 

 

Roof top solar!

 

It is a very good opportunity and there are opportunities for very large companies as well as for medium sized companies and individuals to get into business. 



As an individual you can start a business as an Installer. 



You will have a few well trained / skill trained employees working under you. 



At the small, residential scale, there are practically no barriers to entry.  



There is a wealth of training material available, both in person and online which enables even a one-man contractor to become fit enough to install roof top solar. 

 

At the larger, commercial scale, the main barrier to entry is capital, expertise in management, in sales, etc., 



You will install solar modules in a rooftop as per your Integrator's instructions.



An Installer is someone who is technically minded and can manage a few people or if you can manage many people at a time, then you become an area Installer. 



The installer model is somewhat like a conventional contractor model.  Gross margins are thin, from 15 to 30%. Residential Rooftop systems typically receiving larger margins than commercial



Because commercial jobs will be invariably got thru an Integrator or an EPC contractor.



It is an opportunity for domestic module manufacturers to get into.

The opportunity exists for 

Installers

Area Installers

District Installers

Integrators

Area Integrators

District Integrators

Regional companies - covering a few states having similar policies

 

National companies 

 

The Installers can choose to work on their own or under the National companies, Regional companies, District integrators, District Installers, etc., 

 

The market will evolve as fragmented and unstructured to begin with and will get consolidated. 



You can get more information about types of Installers in Rooftop solar business models.

 

An integrator is someone who deals with the customer, Electricity board, etc



Then there will be a company. Either a national company or a regional company which deals with the Gov, electicity board, corporates etc, 

 

You can read all about them in Rooftop solar business models

 

And Rooftop solar technology types http://www.eai.in/club/users/Nitin/blogs/6670



Rooftop solar is a viable alternative and the prices / tariff in each state will soon help bring about grid parity and the sooner you get into it, the sooner you will reap the benefits.



Rooftop solar comes about in many forms. For example a captive power plant may need a rooftop solar solution as a part of it. 



Diesel to Renewables may need rooftop solar solution.

 

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* Business possibilities with MNRE 

 

RESCO, 

System integrator, 

Financial Institution, 

Financial Integrator and 

Program Administrator

Each of the above is an opportunity

 

 

Implementation of off-grid solar PV project under JNNSM

FAQ

 

1. What is the Procedure to register as Channel Partner?

 

There are 5 types of channel partners and they can participate in the programme through the following procedure:

 

A  RESCO is a entity which would install, own & operate RE systems and provide energy services to consumers. These entities may tie up with FIs for accessing the financial support under the scheme. These are in fact the only entities which would approach the MNRE on their own. CRISIL is in the process of putting in place a system of accreditation. From September 2010 these entities could approach either CRISIL, CARE or FITCH to have themselves accredited and if they meet the minimum requirements laid down by MNRE they would be in a position to approach the Project Appraisal Committee (PAC) with their proposal for a in principle approval. 

 

The PAC would then provide the entity “in principle “approval and allow it to move forward with the implementation. The PAC would also specify that on completing the project, 50% of the funds would be made available automatically and the remaining on completing monitoring. 

 

As far as the Financial Institutions as channel partner is concerned, a comprehensive re-finance scheme has already been notified by IREDA.  The SPV Division has also floated an EoI, wherein they have received over 80 applications from entities interested in partnering in the bank led scheme.  

 

The SPV Division would shortlist the manufacturers region-wise or across the country depending on the strength of their existing after-sales network.  The division will also identify various products after verifying how each of the laid down by MNRE, and then along with product is meeting the standards laid  NABARD, design a pre-approved scheme which will allow RRBs to proceed with the lending for the above identified products and empanelled manufacturers.   It is highlighted that the process of empanelling both the manufacturers and products would be an ongoing process in order to make sure that if there are new players who meet the requisite standards can also be appropriately empanelled. This process it is hoped will result in enabling NABARD to announce their pre-approved scheme to all the financial institutions, which have a re-finance agreement with them.  IREDA will, after signing the agreement in Mumbai on 25th August, place token funds with NABARD to initiate the implementation of this scheme.   

 

System integrators can approach the PAC; with their project in the formats finalise to seek an ‘in principle’ approval.  Since these are entities that would first interact with their market and build a project based on the tentative orders that they have been provided by their clients, the PAC would appraise the project on three basic parameters:-

 

(i) The ability of the entity to implement the project in terms of the skill set of their personnel. 

 

(ii) Details of how parameters of quality would be met as per the standards specified by MNRE.

 

(iii) O&M Plan.

 

System integrators would however need to approach bank/banks who would be willing to have a three way tie up with their clients, themselves and the bank.  The bank/banks would also need to have a re-finance agreement in place with IREDA, NHB or NABARD.  Based on the ‘in principle’ approval, the bank would be in a position to provide the lending support to the clients that have been identified by the system integrators.  It is envisaged that both the capital and interest subsidy would flow to the beneficiaries of the scheme only through the banking channel. Requisite arrangements for providing this flow have already been clearly delianated in the re-finance scheme notified by IREDA.

 

Financial integrators are entities who need to enter into a tri-partite agreement before coming to MNRE. This tripartite agreement has to be between the manufacturers/service providers, financial integrators and any other financial institutions, which is willing to support this kind of a business model.  It is envisaged that the financial integrators would approach the PAC with details of their financial model as well as the product or service that they wish to provide through this financial/business model.  

 

The PAC would appraise the project on the following parameters: 



(i) Details of how parameters of quality would be met as per the standards specified by MNRE.

 

(ii) The ability of the entity to implement the project in terms of the skill set of their personnel. 

 

(iii) O&M Plan.

 

(iv) Financial/business models and its viability.



It is expected that the financial integrators would also tie up with a schedule commercial bank in India so that the subsidy both capital and interest can flow through the banking channel and would be covered under the re-finance scheme of IREDA.



In so far as the implementation of the scheme through programme administrators is concerned, there is complete clarity in how to move forward. 



Formats for both SPV and Solar Thermal have also been prepared.



2. How to submit a project proposal?

 

Formats for submission of proposal are given on the Website of the Ministry. 

 

Two sets are required to be submitted to PAC.3. How the project will be approved?

 

Once the proposal of the channel partner is received an in- principle approval from PAC will be given within a maximum of 45 days. In case additional information is required PAC will inform within 30 days. After full information is received proposal will be cleared in two weeks.



4. What is the subsidy disbursal mechanism?



The release of funds for the project shall be back ended as reimbursement on completion and verification thereof. However for progamme administrators, the release of funds could be front ended, with installments of 70% on sanction and 30% on completion. However, this could be extended to other entities on provision of appropriate sureties. In respect of credit linked capital subsidy and interest subsidy the scheme would be implemented through IREDA, which will be  the designated Nodal agency for disbursement of funds.



5. Procedure for accreditation for channel partner/ financial integrator/ systems integrator/RESCO? 

 

As above in (1)



6. Can NGOs directly approach MNRE for implementation of projects?

 

Only the NGOs who have already been working closely with MNRE can access the scheme directly. Otherwise, the NGOs should collaborate with SNAs. 



7. Whether lighting systems to be provided should be certified by SEC or other test centers?

 

Compliance to standards is mandatory. Certificate from test centres will help in this regard and should be provided to ensure complainace.



8. What is the policy on local content of modules, batteries and other balance of systems in off grid programme?

 

The scheme requires the project proponents to strictly adhere to the national/international standards specified by the Ministry from time to time.  The Use of imported complete PV systems is not permitted under the scheme. 

 

However, use of imported components of a complete PV system is permitted, subject to adequate disclosure and compliance to specified quality norms and standards.

 

The minimal technical requirements and Quality Standards in respect of the off-grid SPV power plants/ systems are given in Annexure-3 of the scheme for solar off-grid applications. These will come into effect from 1st September 2010 to allow sufficient time to the SPV industry to gear up for the same.



9. What are financial limits assigned to channel partners?

 

The financial limits will get decided based on the ability of the channel partner to deliver the implementation of the project within a period of 1 year. But the PAC would not accept any proposal of value less than Rs One crore or 30 kWp. Less than this amount would need to be aggregated at State level.



10. Whether commercial entities can avail accelerated depreciation?

 

The commercial entities can claim all the benefits, which are presently available for renewable energy applications, including solar, under the Income tax act and other notifications, subject to fulfillment of the conditions.



11. Whether any channel partner interested only in capital subsidy whom should he approach?

 

Only accredited channel partner and Programme administrators can access ‘only capital ‘subsidy. The commercial entities can access either capital subsidy or interest subsidy. They should approach a channel partner to avail subsidy.



12. Whether RESCOs require any permission from Electricity boards to produce power?

 

Guidelines under the Electricity Act,2003 and the extant regulations of that particular State will need to be read in conjunction to determine the process for captive power generation.



13. Whether any new technologies invented any where can be introduced in the programme?

 

The Ministry could provide up to 100% CFA for undertaking pilot and demonstration projects through manufacturers and other organizations for demonstrating new and innovative applications of solar systems. The maximum CFA that would be permissible under this provision would be up to Rs 1 crore. The PAC would evaluate the proposal based on parameters like – new applications for solar (not merely using solar as a power source), possibility of reduction of cost of BoS or system design improvement, or a new concept etc.

 

You can get all this from http://www.mnre.gov.in/pdf/FAQ_offgrid_solar.pdf

 

You can discuss your suggestions/ questions etc in the comments column at the bottom of this blog.

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* Floating solar plants.



There are three companies namely Sunengy in New southwhales, Australia, Solarsis Synergy in France/ ciel-et-terre.net/ and SGPsolar in California, USA.



They have different methods of achieving solar power from floating solar panels, solar plants, etc.



They all use captured water bodies.



India has 30000 sq km of captured water bodies.



If even 1 % of that area is utlised - it will equal 1500 large coal plants.



Tata's have tied up with Sunengy, which has a patented technology called LSA.



With the other two companies, entrepreneurs/ companies from India can seek to have a tie up.



There is a solar business opportunity in terms of research for the research minded.



All about this opportunity http://www.eai.in/club/users/aathmika/blogs/1170



Tatas have already started building a floating solar plant with Sunengy, somewhere near Pune.

 

There is another company in Punjab doing this.

 

There is a clear opportunity for big companies to tie up with Solaris Synergy and or SGP solar in California USA.

 

http://ciel-et-terre.net/floating-photovoltaic/



This is the French company.

 

I have been recommending these companies for a long time.

 

 

 

NOW, SGP solar has been ranked as one of  the fastest growing private company in usa. 

 

Or you can fund research in this area. 

Floating solar plants 

 

Great opportunity: For large companies, with deep pockets. 

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Business Possibilities thru MNRE in Villages 



Manufacture / market solar lanterns, solar home systems, Street lighting system, stand alone power plants, solar pumps. The details of the incentives are given below.



It may make sense for individuals to tie up with large cos that manufacture these. Or better still become an agent for a large company that manufacture these products and market them.

 

Pattern of Central Financial Assistance (CFA) for SPV Systems:



SPV System

CFA for General Category States

CFA for Special Category States

Administrative Charges

Solar lanterns (10W module, 7W CFL)

Nil

Rs. 2,400

Rs.100

Solar Home System – Model 1 (18W module, 1 light)

Rs. 2,500

Rs. 4,500

Rs. 200

Solar Home System – Model 2 (37W module, 2 lights)

Rs. 4,800

Rs. 8,660

Rs. 200

Solar Home System – Model 3 (37W module, 1 light, 1 Fan)

Rs. 4,800

Rs. 8,660

Rs. 200

Solar Home System – Model 4(74W module, 2lights, 1 Fan)

Rs. 4,800

Rs. 8,660

Rs. 200

Solar Home System – Model 5(74W module, 4lights)

Rs. 4,800

Rs. 8,660

Rs. 200

Street Lighting Systems – (74W module, 1-2 lamps)

Rs. 9,600

Rs. 17,300

-

Stand alone power plant of capacity more than 1Kwp

Rs. 1,25,000/KWp

Rs. 2.25,000/KWp

Rs. 10,000

Stand alone power plants of capacity more than 10Kwp with distribution line

Rs. 1,50,000/KW

Rs. 2,70,000/KW

Rs. 10,000

Solar Pumps

Rs. 30/Wp, subject to a maximum of Rs. 50,000/- per system

Rs. 30/Wp, subject to a maximum of Rs. 50,000/- per system

 

 

For business opportunities about Solar Home lights, Solar Street lights, specifications, visit here

 

http://www.eai.in/club/users/aathmika/blogs/540

 

Good Opportunity. Aleady players are active. Both manufacturing and trading opportunities exist.

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* A low cost solar energy solution for the Indian industries



Solar Heat for Industrial Purposes, SHIP for short,  the Market in India, the Business, the Opportunity, Cost Advantage of Solar Process Heat



The market for industrial heat in boilers is estimated to be 26 billion US dollars per 

annum in USA alone.

 

Solar steam produced is estimated to cost $ 4.60 per MBTU compared to average cost of natural gas powered steam of about $ 6 to $ 10 per MBTU.



This estimate is as per one the companies in Solar Heat for Industrial processes (SHIP).



Indian entrepreneurs should take up such projects that cut down co2 emission and is less expensive.



There are several companies that are into SHIP in USA. One of them claims that their process is CO2 emission free. Obviously because they use solar energy.



The company also claims a reduction in the cost by as much as 50 %.  



That is a lot. Those interested must act fast.

 

Solar Heat for Industrial Purposes

(SHIP)



You can discuss your suggestions, ideas, questions 

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* Captive power plants.



Many factories, companies, office complexes, textile factories, cement factories, sugar mills and many other small and medium industries need back up power.



What is being talked about as an opportunity is this back up power. Actually already many companies in India already have captive power generation. But there a lot more number of companies in India which can benefit from this captive power plant from solar energy.



There are some financial benefits and also the benefits of RECs otherwise known as Renewable Energy Certificates which are tradeable. There is good report on this at

 

http://www.eai.in/ref/reports/captive_power.html



Reading up the report will open up the opportunity for the above mentioned factories for their own backup power ie captive power.



Those who are marketing minded and those who are solar energy consultants or renewable energy consultants, this is a very good business opportunity in India.

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* Education and training:



MNRE expects that there is going to be a need for 100,000 trained professionals in the next 8 years.



I think that is a gross underestimate.



This opportunity is not just for individuals who want to learn and get jobs. Or learn and start a business or set up a training center as a businessman. OR u can even set up an online course for the whole world. The limitations are your imagination.



I foresee many training centers both for unskilled and for post graduation education courses happening soon. The course contents given in the sample solar education centers, will be Indianised by the shrewed Indian businessmen.



Some of them may go for tie up with universities abroad. For example they may have a tie up with a US university in Pune or a tie up with a European university in Jalgaon.



Good opportunity to get into Solar education, Training.



Opportunity exists as a nationwide company, as a college, as a university, providing Graduations/ Degrees or practical training for the blue collars, providing certificates /diplomas.



When the surge comes there will be a need for trained professionals.



Can be a franchisee also.

http://www.eai.in/club/users/aathmika/blogs/1284

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* Solar inverters



In a Global Clean Technology Conference on February 23-24 in New York, with more than 100 public and private companies and 700 attendees, including strategic and financial investors, high-level policymakers and industry thought-leaders in attendance the following question was asked as a part of a Survey.



Question:



Within solar, which sectors of the supply chain are the most attractive investment themes?

(Please rank with #1 being the strongest):

Inverters 1

Cells/Modules 2

Projects/Installation 3

Polysilicon 4

Manufacturing Equipment 5

Wafers 6

 

The result of the survey is given in green color.

Inverters!!



That is why I am calling it a great solar business opportunity in the Indian market too.



700/800 of the world’s leading practioners have identified Inverters as the most attractive investment theme.

 

Solar inverters in India, manufacturers, cost and business opportunities  - You can get to know the business opportunities here.



You may want to look at http://www.solren.com/residential.html and http://www.solren.com/utility.html



Manufacturing opportunity is meant for large cos.

 

What is the capital subsidy, interest on loan, rebates if any etc can be got from here



Especially for inverters in Residential rooftops, area wise distribution is an opportunity for the sales minded.

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* Micro grid:  

 

The electrical needs of rural households are relatively small (0.5-2.5 kWhr per day) and a micro-grid system of 20-35 kW would suffice a small village. This may not be a 100 % solar solution. The solution to the villages can be hybrid.



Will research and write more about this opportunity soon.

 ------------------------------------------------------------------------------------------------------------------------------------------

*. Solar Irrigation Pumps: 

 

This is a big opportunity area. Already being catered to in many villages.

Coming soon.

 ------------------------------------------------------------------------------------------------------------------------------------------

*. Solar thermal



India on an average has 300 clear days of sun and the radiation in most parts is 4.5 to 6 kWh/m2/day, which is pretty high.



Solar thermal projects  concentrate sunlight on a fixed point and uses a medium to move the stored heat energy to a place where it can be converted into electricity by superheating water into steam and using the steam to turn a turbine that generates electricity—ultimately the same process that natural gas and coal-fired power plants use to generate electricity.



Solar dryers can be used in agriculture.



At present the waste is just exposed to the sun and dried. Solar water heating. It is being made mandatory in many states to heat water for bathing purposes with solar water heater in all new buildings. Solar thermal can be used for cooking, community cooking in hotels, villages, schools in villages, etc



Several industries that need low to medium heat can use solar thermal technology to reduce air pollution and carbon foot print.



This opportunity is for the technically minded. This opportunity exists for small medium and even big companies.

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* Manufacture of Solar Refrigerator, DIY Solar Refrigerator, marketing, Maintenance and Repair of Solar Refrigerators

 

http://www.eai.in/club/users/harita/blogs/1484



The blog gives as of now basic insight of a Solar Refrigerator.



It also provides information on manufacturers in India and abroad.



There are many villages without electricity and they need refrigeration for the individul households, for preserving the produce of that village. Very soon, we will have information on market potential of solar refrigerators in India's villages, market size of solar refrigerators in other markets. Cost of solar refrigerators and actual cost of refrigeration etc also would be made available soon.

 

For now u can visit http://www.eai.in/club/users/harita/blogs/1484  (You can discuss your ideas, doubts, questions, etc in this blog)



Good opportunity

To manufacture. 

To market. 

To maintain.

Even solar coolers are a good opportunity.

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* Opportunities in Solar cities:



There are going to be about 60 solar cities coming up across India.



What business opportunity exists in this solar city concept of mnre is a question in the young minds of Indians. Will try and answer them in the coming weeks. Stay tuned.



Besides suggesting business opportunities in solar energy in India for large and medium companies, I thought it will be useful for small and individual players, if I can explain as to how they can get into solar business in India, it will be useful.



There are bound to be opportunities for individuals, SMEs to take advantage of Solar City concepts. Let them start coming up and we will identify ' solar city' opportunities there.



This opportunity has not been updated, because, there are no proper guidelines from the respective State Governments. Once the policies come out, opportunities will be identified and posted here.

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Solar Air Heaters 



With global warming, there is global cooling also that happens.



During winter, the North of India becomes too chill to manage.



Every urban household would do with an Air Heater, a solar air heater. Even the rural households and the households in the unelectrified villages will need an air Heater. The old and the young suffer in cold and air Heater is not a luxury any more.



It is a good opportunity to manufacture AIR Heaters and market in such cold markets. 



All discussions, questions pertaining to this opportunity to be restricted to this blog.






3 Responses to Bihar Solar Energy Policy, Solar Projects and Solar Business Opportunities in Bihar

  1. Casokan Wed February 22 2012 01:24:46 PM

  2. Romila Mon June 20 2011 09:10:04 AM

    Nitish Kumar government giving its nod to the new Industrial Promotion Policy, 2011, the decks have been cleared for big ticket investments even as the fate of investment proposals worth around Rs 1 lakh crore hangs fire due to alleged non-cooperation from the Centre.

    The new policy, effective from July 1, 2011, will replace the Industrial Policy of 2006 much before its extended term expires on December, 2011, and will have a thrust on addressing basic problems like shortage of power.

    http://articles.economictimes.indiatimes.com/2011-06-16/news/29665437_1_industrial-promotion-policy-renewable-energy-new-policy

  3. Aathmika Thu May 26 2011 06:05:25 PM

    Marketing opportunity !
    You can market Silicon ink from Innovalight to solar cell manufactures in India.
    Contact innovalight.com sales@innovalight.com

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