Will solar power rescue India from power crisis?

Published on Fri, Apr 27, 2012 at 21:48 |  Source : CNBC-TV18

Updated at Fri, Apr 27, 2012 at 22:41  

Excerpts from India Business Hour on CNBC-TV18 Watch the full show »

With thermal power plants engulfed in myriad problems - from coal supplies, to PPAs going sour, can solar power bridge the gap?

Even though India doesn't generate even a 1,000MW of solar power at present, the government is aiming for a 20 fold increase in production over the next 10 years, but lack of funding for projects could make the prospect cloudy reports CNBC-TV18’s Sumit Jha.

The Indian government has an ambitious target of achieving 20,000MW of installed solar power capacity by 2022 under the National Solar Mission. The biggest hurdle, however, is funding for solar projects in the near term, as commercial banks aren't very sure of the return scenario because of lack of reliable data, high tariffs and sick state utilities, which will eventually purchase power.