Macquarie Group plans to enter into India solar business

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Macquarie Group plans to enter into India solar business

Macquarie Group may need to spend ₹1,000 crore to purchase solar power resources of Canadian Solar in India at a valuation of ₹6-6.5 crore per megawatt.

Ontario-based Canadian Solar is an energy supplier with subsidiaries in 20 nations worldwide. It is the prime manufacturer of Solar Pv panel modules. In India, Canadian Solar has an arrangement of 160 megawatts (MW) and has introduced more than 1 gigawatts (GW) of modules, including a 25 MW off-grid solar system for the home in Bikaner, Rajasthan, and a 35 MW venture in Bagalkot, Karnataka. Canadian Solar likewise has a joint endeavour with local wind energy power firm Suzlon Energy Ltd to execute solar project tasks in Telangana.

Macquarie may need to spend ₹1,000 crore for these benefits at a valuation of ₹6-6.5 crore for each MW.

The Indian solar power sector is confronting headwinds as far as a defend obligation of 25% and a devaluing rupee, pushing up expenses for local solar designers who import a main part of the solar modules. The last major deal in the solar power source division was in April when Renew Power declared its intent to purchase Ostro Energy for ₹10,800 crore. From that point forward, hunger for expansive arrangements among solar developers and funds investors has suffered.

Players, like Renew Power Ventures and ACME Solar, have briefly retired plans for starting share deals.

“This is a terrible time for the solar sector,” said an industry insider. “Macquarie is the main purchaser in the market at the present time. Other than this, we are seeing arrangements failing to work out, no reprieve from 18% GST on modules, and rising financing costs are crushing edges for developers.”

The Indian government has set a goal-oriented target of generating 100GW of solar power by 2022 from the current introduced limit of 21.65 GW. Taxes for power delivered at utility-scale solar powered company contacted an unsurpassed low of ₹2.44 per kilowatt-hour sooner this year, however, have since increased from those targets.