MUMBAI: Coal India Ltd has been in news for diversifying to solar power business having incorporated two wholly-owned subsidiaries – CIL Solar PV Limited for manufacturing of solar value Chain (Ingot-wafer-Cell Module) and CIL Navikarniya Urja Limited for renewable energy.
This foray into solar power and renewables is a positive, given rising concerns about climate change associated with coal usage. There is, however, stiff competition in the renewable energy space, especially solar power. Chinese manufacturers having access to cheap power and abundant water supply are dominating the arena. Larger peers also are benefitting from economies of scale. Hence, Coal India will require to match costs, which would, in turn, require large incentives, say analysts.
