Moneycontrol Bureau
Shares of Moser Baer, Ujaas Energy and Indosolar surged 10-18 percent intraday Wednesday after the government increased solar power plants investment.
"Cabinet Committee on Economic Affairs has approved scaling up of budget from Rs 600 crore to Rs 5,000 crore for implementation of grid connected rooftops systems over a period of five years upto 2019-20 under National Solar Mission (NSM). This will support installation of 4200 MW solar rooftop systems in the country in next five years," says the government.
This capacity of 4200 MWp will come up through residential, government, social and institutional sector (hospitals, educational institutions etc.).
The government says industrial & commercial sector will be encouraged for installations without subsidy. This will create market, build confidence of consumers and will enable balance capacity through market mode to achieve the target of 40,000 MWp by 2022, it adds.
The government has revised target of National Solar Mission (NSM) from 20,000 MWp to 1,00,000 MWp by 2022. Out of 40,000 MWp is to come through grid connected solar rooftop systems.
This approval will boost installations in a big way and will act as a catalyst to achieve goal of 40,000 MWp, it says.
There will be no subsidy for commercial and industrial establishments in private sector since they are eligible for other benefits such as accelerated depreciation, custom duty concessions, excise duty exemptions and tax holiday etc.
Analysts say allocation will give a boost to sale of photovoltaic cells.
At 14:29 hours IST, the scrip of Indosolar was quoting at Rs 9.77, up 9.65 percent. Ujaas Energy rose 8.54 percent to Rs 21.60 and Moser Baer (India) jumped 11 percent to Rs 10.37.Posted by Sunil Shankar Matkar
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