Rupee Drop Imperils $670 Million Solar Projects: Corporate India
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The rupee’s 9 percent slide this quarter to a record may reduce returns for $670 million of solar power projects in India as higher import costs hurt developers grappling with a rise in panel prices.
Purchases could be postponed as equipment such as panels and inverters comprising 60 percent of the expenditure to build a plant is either imported or based on U.S. dollar prices, said Gaurav Sood, managing director of Solairedirect SA’s local unit. Ajay Goel, chief executive officer at Tata Power Solar Systems Ltd., said as much as 80 percent of module components such as anti-reflective glass have few or no local substitutes, raising costs.