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With acquiring BP Alternative Energy Holding’s 51 per cent stake in the joint venture company Tata BP Solar, the latter has become a wholly owned subsidiary of Tata Power.
Tata BP Solar India was undergoing trying times due to cheap imports of solar panels from China. It is one of the first and pioneering companies in the Indian solar industry and has a capacity of 125 MW. Howrever, it was estimated around December 2011 that the company would end the year with about 72 MW.
Despite the high profile pedigree, the joint venture has not been able to secure any order recently from many projects – be that 900 MW Gujarat solar programme, or the 600 MW National Solar Mission, Phase-I—an indication of the competitive pressures. Most of the orders went to either the low cost Chinese manufacturers, or the US companies that are typically backed by low cost finance from the US Exim Bank.
British Petroleum had earlier decided to get out of the solar business and in December, Tata Power announced that it would buy out BP in the joint venture.
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