In a bid to secure a slice of India’s lucrative solar incentives, two of the country’s biggest conglomerates, Reliance and Tata, are competing to win government contracts worth $2.4 billion.
The Indian government’s ambitious plan to increase solar power capacity by 25 times over the next decade has prompted a flurry of interest from companies looking to capitalize on the potential growth. Under the scheme, India aims to install 280 gigawatts (GW) of solar power capacity by 2030, up from the current 10 GW.
Reliance, owned by billionaire Mukesh Ambani, has reportedly submitted bids for projects totaling 6 GW, while Tata Group has applied for contracts for 4 GW of solar power capacity.
The solar initiative is part of India’s push to reduce its carbon footprint and meet its commitments under the Paris Agreement on climate change. The government is offering incentives including viability gap funding, capital subsidies, and tax waivers to encourage companies to invest in renewable energy.
The bids for the solar projects are being evaluated by the Solar Energy Corporation of India, with the winners expected to be announced in the coming months.
If successful, the contracts would be a significant boost to both Reliance and Tata, as they look to diversify their portfolios and move into the rapidly growing renewable energy sector.