Renewable energy is so in trend that both private and public sectors are all set to seize the right opportunity at right step. Even the Union Government raised the bar of renewable energy production since it came in power and it is enabling the regulations ever since. There is still a need to provide the infrastructural benefits for achieving these targets.
Besides that, other challenges that the Union Government has acknowledged are risk mitigation around land issues and bringing in more capital, whether it’s National budget allocation or foreign investment, capital and financial resources have always been a concern for the Nation’s industrial growth and hence economic growth.
The government took initiatives to bring in the National Thermal Power Corporation and Solar Energy Corporation of India as the procurers. Just like the solar park policy, whose mechanism was well-crafted to provide essential funds to the states which look forward to set-up super solar parks in the region.
According to the industry expert, Sujoy Ghosh, some gaps in the infrastructure industry need to be filled, which vary from bringing the demand and supply in equilibrium situation to implementing central regulations by the state government. Ghosh suggests that the high cost of capital in India needs to be brought down as well.
A number of industry experts, agree with Sujoy Ghosh’s suggestions, which will certainly help the Indian infrastructure industry to flourish in near times if these points are kept in mind while executing the power projects in the same.
Ghosh also points out the local debt rate in the industry, which is 11 to 11.25% and infrastructure projects avail long-term debt at 2 to 3% in matured markets. This debt policy also needs proper attention of the concerned authorities, mentioned Ghosh.
Let’s see when Ghosh’s views are heard by the government.