Japanese SoftBank ventures into India with $20 billion

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"India has two times the sunshine of Japan. The cost of construction of the solar park is half of Japan. Twice the sunshine, half the cost, that means four times the efficiency," SoftBank’s chief executive Masayoshi Son summed up in a conference in New Delhi, India in June this year on this move.

According to Reuters, SoftBank will team up with Bharti Enterprises and Taiwan’s Foxconn to invest $20 billion in solar projects across India. SoftBank will have majority control in the newly formed company, SBG Cleantech, with Bharti and Foxconn as minority stakeholders. The companies have also made a minimum commitment to generate 20GW of solar energy. The companies are also looking to manufacture equipment in India. Rajasthan and Andhra Pradesh are the states in consideration.

Indian Prime Minister Narendra Modi’s goal is to achieve 100GW of solar capacity in India to prevent blackouts and pollution. The current status is 4.1GW. Son’s investment into Indian solar will account for a fifth of the necessary financial backing, namely $94 billion, needed for Modi’s dream.