Stating that it takes around Rs 4 crore per MW to install solar capacity and over Rs 7 crore for wind, and assuming a mix of 40:60 between the two, the average cost per MW of new capacity comes at over Rs 5 crore per MW.
“At a ballpark level, we are looking to invest about Rs 44,000 crore,” Sinha said, speaking after the launch of the second edition of his book ‘Fossil Free‘.
When asked about the impact of hardening yields, he said the company is preferring to borrow domestically, where the bank is flush with liquidity and is avoiding any overseas borrowing.
The rate has increased by 0.50-0.75 per cent for domestic borrowings, while the same is much higher internationally, he said. The company is not impacted by the conflict in the Middle East region, Sinha said. Meanwhile, he said the company is also looking at the Green Hydrogen space for which it has already a joint venture with state-owned Indian Oil Corporation and L&T.
He also pitched for sops like import duty waivers for equipment, or extending the benefits of Special Economic Zones for the sector, and added that all these steps collectively have the power to reduce the overall costs of green hydrogen manufacturing by 20 per cent to about USD 2.75 per kilogram from the present USD 3.5.