The government said on Monday it expected an investment of Rs 22,500 crore (Rs 225 billion) over the next five-six years in a proposed Special Economic Zone for manufacturing renewable energy equipment.
"Six states, including Tamil Nadu, Maharashtra, Andhra Pradesh, Karnataka and Madhya Pradesh, have expressed interest in setting up the SEZ," Vilas Muttemwar, Minister of State for New and Renewable Energy, told reporters on the sidelines of the World Wind Energy Conference in New Delhi.
The government was yet to decide on the final location of the SEZ, he said.
"We will go according to logistics and the location that will be convenient for all stakeholders in the SEZ," he said. The minister said poly silicon manufacturing for solar panels would itself see an investment of $2 billion (about Rs 9,000 crore or Rs 90 billion) in the SEZ.
This apart, manufacturers of wind turbines, hydro machines and biomass gasification plants will also set up shops in the proposed zone. He said India has the comparative advantage of cheap skilled labour and a good quality of scientific and technical manpower.
"The SEZ will result in renewable energy equipment becoming cheaper, which would bring down installation costs," he said. World Wind Energy Association President Anil Kane said India had the potential to attract greater investments in the sector.
By 2030, India would need 64,000 MW energy from wind and every MW needs an investment of Rs 5 crore (Rs 50 million), he added.
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