Mitsui Group Said to Be Looking for a Role in India’s Clean Energy Story

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With the growing innovations in the renewable energy sector, India is now looking out for investments for its clean renewable energy sector. One of Japan’s largest corporates, Mitsui Group has come forward and showed interest in investing in India’s clean energy sector.

Due to a drop in the equipment prices and lower cost of raising finances, we have witnessed very low wind and solar tariffs in India. This brings the focus on the patient capital, which will provide good returns over time.

According to experts, the relation between India and Japan has been good so far and Japanese investments in India’s clean energy sector will be beneficial to both the countries. Japan can help in providing access to some of the best technologies and also provide cheaper and soft loans.

Japanese investors such as Mitsui Group want to follow JERA into India. They are showing interest in investing in the existing players. This also complements the sector given that there is a requirement for Japanese growth capital,” quoted a person on condition of anonymity.

JERA Co. Inc. last month invested in 10 percent stakes in ReNew Power Ventures Pvt. Ltd, which comes to around $200 million. JERA Co.Inc. is a joint venture between Chubu Electric Power Co. and Tokyo Electric Power Co., which is Japan’s largest utility company.

Another person, who is aware of this matter, on condition of anonymity confirmed that Mitsui Group is very much interested in investing in India’s clean energy sector. However, when the sources contacted a spokesperson from Mitsui & Co., he declined to comment on the matter and another spokesperson at the Japanese embassy in India chose not to respond to an email seeking confirmation.

The Japanese company Mitsui & Co. currently has its presence in the Indian sectors like agri-processing, pharma, and steel.

As part of its obligations to the Paris Climate Change Agreement, the Indian government aims to achieve 175 Giga Watts of renewable energy capacity by the year 2022.

Mitsui’s 2020 management vision sees India as a priority country for investments along with other emerging economies such as China, India, Indonesia, Russia, Mexico, Myanmar, Mozambique, Chile and Turkey,” quoted the executive Vice President at Aranca, Mr.Kannan Sivasubramanian.

Japan has promised to invest around $33 billion in India’s manufacturing and infrastructure sectors between the years 2014 and 2019.

As growth in most other emerging economies slows down, and given the close Indo-Japanese governmental ties that have solidified over some time now, it’s only natural for Mitsui Group to pursue a more aggressive investment strategy with respect to India, especially in sectors outside the bell curve of its traditional ‘resources’ stronghold’, a sector that’s been subject to significant pressure globally,” Sivasubramanian stated.

Currently, Japan is among the top 5 sources of foreign investment in India in the pharmaceutical and automobile sectors over the past few years.

Strong and reliable investors include Nissan Motor Co. Ltd, Nippon Life Insurance Co., Suzuki Motor Corp., Daiichi Sankyo Co., Toyota Motor Corp., JFE Steel Corp. and Mitsubishi Motors.

 

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