Japan telecommunications company SoftBank Corp. is joining India’s Bharti Enterprises Ltd. and Taiwanese design and manufacturing services provider Foxconn Technology Group to set up a joint venture that aims to develop 20 gigawatts of solar capacity in India.
The three companies will jointly invest in the venture called SBG Cleantech. “Softbank will take lead and responsibility to make 20GW as a minimum commitment in solar space in India,” said Softbank Chairman and CEO Masayoshi Son. “In economic terms grossly US$20 billion will be the scale of investment, probably it could be one of largest investment by a foreign company in India.”
SBG Cleantech will also develop wind energy. Following the Indian Prime Minister’s 100GW solar and 60GW wind target by 2022, the venture will invest in and develop renewable energy plants across India. SBG Cleantech said it is committed to contributing to the government’s mission of uninterrupted power for all and the renewable energy target by 2022. SoftBank also intends to participate in the 2015-16 round of solar power plant tenders under the National Solar Mission program and state-specific solar programs.
“Our eyes are trained on India, given the vast potential that the country offers,” said Son. “We have already made considerable investments in the technology sector here. With this partnership, our goal is to create a market-leading clean energy company, to fuel India’s growth with clean and renewable sources of energy. We have joined hands with Bharti Enterprises and Foxconn, two leaders in their respective markets for this venture that will propel India into the future.”
SBG Cleantech will be led by Manoj Kohli, a Bharti veteran, who until recently led Bharti’s emerging businesses, as executive chairman and Raman Nanda, as the CEO. The company will be headquartered in Delhi.