The Rs 250 crore Tata BP Solar India Ltd, a 51:49 per cent JV between BP and the Tata group, has chalked ambitious plans to become a key player in the non-conventional energy sector in the country. Tata BP Solar Ltd with a 35 per cent share in the solar power applications market in the country has recently inaugurated a 38 MW Solar Module manufacturing facility in Bangalore. Speaking to Kavitha Alexis of FE Tata BP Solar managing director A K Vora touched upon how the solar power industry is evolving in India, the needs of the industry and about Tata BP Solar plans. Excerpts:

What are the growth plans of Tata BP Solar?
We are currently a Rs 250 crore company (March 2003). We are looking to a 30 per cent growth in the next financial year. Meanwhile, in May we would launch our BIPV laminates in US and then take it to other countries in Europe. We would come with new products every year and would take up challenging projects to power the rural villages in India. We have a major export thrust and expects our exports to grow to
Rs 300 crore by 2005.

What are major projects implemented by Tata BP Solar for the rural areas? Where does the funding for implementation come from?
We have implemented many projects in the rural and remote areas throughout the country. We have got orders for implementing 500 to 600 solar water pumping systems in Punjab at approximately Rs 16 crore, which is under supply and commissioning. We were chosen by the Ladakh Renewable Energy Development Agency to implement a Rs 16.6 crore project to electrify 80 villages in Leh and Kargil districts. Tata BP Solar has set up a 200 KWp Grid Connect Solar photovoltaic power plant in Khat Kar Kalan to meet the power needs of villagers.

Could you provide some details regarding R&D activities in Tata BP Solar.
We have two types of R&D activities going here. One is research for increasing efficiency of solar cells. Currently we are developing a process to achieve 16 per cent efficiency cells from the current 15 per cent ones. The second is solar application and product R&D. Our R&D team has developed a range of products and applications for the Indian and export market including solar pressure cookers, vaccine storage refrigerators, pumping systems, lighting systems, street lights, solar power packs for rural clinics, water purifiers, water heating systems etc. In fact, we are the first in India to design engineer and market Building Integrated Photovoltaic (BIPV) modules which could be used as a substitute for glass while generating power to use inhouse. We develop two to three new products every year.

Would you throw some light on solar power industry in the country at present?
Solar energy consumption in India has grown from 1 MW per year way back in the 80’s to 12 MW per year today and has resulted in the birth of a flourishing industry in the large, small and medium sectors. The total solar module assembly capacity is 50 to 55 MW today out of which 38 MW is from Tata BP. The foundation has been laid and we have got enough encouragement from the ministry of non-conventional energy sources (MNES) for the new applications, programmes etc. However, today it is time for takeoff — not in an incremental way but a big leap from 12 MW per year to 200 MW per year in the next 10 year’s time! For this to become a reality, MNES, industry, NGO’s, state governments and other bodies should work closely.

There is a general perception that solar power is more expensive compared to conventional energy. Please comment.

IT is not correct. Solar power is not expensive and is much more cost effective in the long term. In fact in the last 15 to 20 years cost of solar modules has now come down sharply to $4 per watt from a high of $20 per watt in 1985. This would continue to reduce and would be one of the major factors which would facilitate the take off.

However, in terms of solar energy there is no level playing field as in the case of conventional energy. The total subsidy from the government for conventional energy is Rs 25,000 crore per year whereas the total fiscal funding for all the renewable energy sector put together is less than Rs 600 crore. This has to be changed for making it more feasible and popular.

From the industry perspective, what do you expect from the government to improve the scenario.

We are planning to talk to the planning commission and meet all the concerned people including the finance minister to make some policy decisions regarding renewable energy. The government should lay down a policy that 15 to 20 per cent of all converted grid power capacity installed should be from renewable energy sources. At least 15 to 20 per cent of the subsidies given for conventional energy (Rs 25,000 crore) should be given to renewable energy and the government should replace gradually non sustainable subsidies by sustainable subsidies.

What are your suggestions to make solar power systems more feasible and get a better reach at the end user level?
Today one of the main deterrents in switching on to solar energy is the capital cost that has to be put in by the customer initially. There should be some mechanism where instead of paying for example Rs 15,000 at one go for a solar power system for electrification of a house one can pay in installments as a monthly or quarterly bill as in the case of conventional energy. After the cost is retrieved in a stipulated time frame, the customers owns it and would get free power for more than 30 years. Also, the banks should be mandated to give loans for solar power equipments for end user as part of priority lending sector. These factors would definitely improve the current scenario and help us meet the target.

What is the status of Indian solar power industry in terms of technological breakthroughs?
India has cutting edge technology, global quality and competitiveness in the global perspective. Tata BP Solar has implemented silicon nitride coating process on multi crystalline cells which enables production of solar cells with highest efficiency interms of mass scale production. The clear proof of our competitiveness and acceptability in the global market is the fact that 55 per cent of our total sales is from exports (Rs 137 crore) out of which 95 per cent is from developed countries like US and Europe.