SoftBank, IL&FS Energy tie-up falls through

SoftBank’s plan to build solar parks in tie-up with IL&FS Energy has run into trouble. Sources said there was no joint venture in sight. SHREYA JAI writes

Japanese major SoftBank’s plan to build solar parks in a tie-up with IL&FS Energy has run into trouble. The bank’s energy arm in India, SB Energy, had signed a memorandum of understanding with IL&FS Energy in February this year. Industry sources said the partnership has fallen through and no joint venture is in sight.

The partnership has aimed to build solar power parks across the country, with total capacity of 20 gigawatt.

SB Energy is looking at new partners to execute upcoming solar power projects, with capacity of 1 Gw. Sources said the company is facing challenges in getting land, clearances, and transmission facility. It is seeking an Indian partner.

To a detailed questionnaire sent by Business Standard, a SoftBank spokesperson said: “We don’t comment on what is essentially speculation.”

In 2015, SoftBank joined hands with Bharti Enterprises and Foxconn for an estimated investment plan of $20 billion in the clean energy sector. Its initial plan to set up solar panel manufacturing units in India has not seen any progress yet.

SoftBank aims to invest $1 trillion by 2030 in the renewable energy sector in India. The current installed capacity of solar power in India is 25 Gw; the tariff has come down to ~2.44 per unit.

SB Energy has won 1.4 Gw of solar projects in India in the past two years. In the Bhadla solar park bidding, SB Energy had last year bid ~2.48 per unit, creating a record low. The project is currently facing issues over power transmission because of infrastructure problems.

Business Standard recently reported that the Centre has modified several norms for awarding the solar projects, which the industry feels “seem to be tailor made” for the Japanese giant.

These include a proposal to issue bulk tender for solar power projects of 10-15 Gw in one go. The move came after a meeting of Masayoshi Son, chief executive officer, SoftBank, with the Prime Minister’s Office in May.

More on business-standard.in