China to Invest $5b in Indian Renewables Sector

China to Invest $5b in Indian Renewables SectorChina to Invest $5b in Indian Renewables Sector

Chinese tycoons Liang Wengen and Nan Cunhui plan to inject $5 billion into India’s renewables sector, as Prime Minister Narendra Modi seeks a major expansion of clean energy in one of the world’s biggest polluters.

Liang’s Sany Group will install 2,000 megawatts of capacity and generate 1,000 jobs from 2016 to 2020 at a cost of $3 billion, a statement released at a briefing in New Delhi showed. Chint Group Chairman Nan said at the same event that his company will invest $2 billion in solar power and equipment, Renewable Energy World reported.

Modi’s goal is 175 gigawatts of green energy capacity by 2022, up from about 37 GW, at an estimated cost of $200 billion, more than the size of Vietnam’s economy.

Other billionaires, such as SoftBank Group Corp.’s Masayoshi Son and Foxconn Technology Group’s Terry Gou, have also outlined plans for substantial investment in clean power in India.

The nation remains reliant on coal, which fires about 60% of its power generation capacity. Asia’s third-largest economy also needs to find the funds to pay for its green ambitions. While Modi is trying initiatives, such as dollar-linked solar contracts, to cut costs and woo investment, India has yet to allow higher distribution charges so electricity utilities can afford more renewable supplies.

“There have been billions in commitments made to invest in the Indian renewable sector over the last few years … However, very little of these commitments turn into a real investment,” Raj Prabhu, chief executive officer of Mercom Capital Group, a clean tech research company said.