Solar module makers like Reliance Industries and Tata Power company were among the bidders for ₹ 19,500 Cr ($ 2.4 billion) in financial incentives that India is offering, to curb imports of panels from dominant producer China, and boost domestic manufacturing.
A few other companies showing interest in the deal include US firm First Solar Inc. and Indian Companies like JSW Energy Ltd., Avaada Group and ReNew Energy Global Plc, according to reports. However, the embattled Adani Group was not among the bidders, though it is one of the largest solar panel makers.
The financial assistance is a part of Prime Minister Narendra Modi’s aim to turn India into a manufacturing powerhouse. This will help to create more jobs in the economy and help to reduce imports.
The government is offering grants to take the country’s module-making capacity to as much as 90 gigawatts, which will be enough to meet its own requirements and serve export markets
Following the news, the shares of Tata Power were trading 1.41% higher at ₹ 208.50 apiece at 01:39 PM on Friday. Meanwhile, the shares of Reliance Industries were trading 2.21% higher at ₹ 2377.45 apiece on the National Stock Exchange (NSE).
ICICI Securities in a research report published just a month ago, has a buy call on the shares of the market heavyweight, with a price target of ₹ 2802. This translates to an upside of 17.86% as compared to its share price of ₹ 2377.45.
In another development, Reliance Industries Chairman Mukesh Ambani said that the group will be investing n Andhra Pradesh to set up a 10-gigawatt renewable solar energy project.
Meanwhile, the brokerage has maintained a buy call on the shares of Tata Power Company, with a target price of ₹ 262, which indicates an upside of 25.66% as compared to its share price of ₹ 208.50.
Written by Simran Bafna
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