Chennai: Tata Power Company on Thursday completed the purchase of BP Alternative Energy Holding’s 51 per cent stake in the joint venture company, Tata BP Solar.
Consequently, Tata BP Solar India Ltd is now a wholly owned subsidiary of Tata Power.
One of the first and pioneering companies in the Indian solar industry, the quarter-century-old Tata BP Solar India has been in trouble in the recent times, thanks to cheap imports of solar panels from China.
Tata BP Solar has a capacity of 125 MW, but it was estimated around December 2011 that the company would end the year with about 72 MW.
Despite the high profile pedigree, the joint venture has not been able to secure any order from the projects awarded under the 900 MW Gujarat solar programme, or the 600 MW National Solar Mission, Phase-I—an indication of the competitive pressures. (Most of the orders went to either the low cost Chinese manufacturers, or the US companies that are typically backed by low cost finance from the US Exim Bank.)
British Petroleum had earlier decided to get out of the solar business and therefore its exit from Tata BP Solar had been well flagged.
In December, Tata Power, (the Indian promoter) announced that it would buy out BP in the joint venture. That process was completed today.