Mr. Hitesh Shah, Managing Director, Euro Multivision Ltd., has made some pre-Union Budget suggestions for the development of the Solar Photovoltaic Industry in India.

Mr. Shah says, “Even though the Indian market for renewable energy, especially solar, is in a nascent stage, there are several options and ways to give impetus to the same. India has a long way to go before strong players make an impact on the market and the consumers. The existing and new players as well as the government could make further progress by taking positive steps to actively stimulate the market.”

Expectations from Budget 2008-2009...

Ø Besides offering subsidy on solar related products, the Government should increase awareness by offering training on PV technology, PV system designs and related fields.

Ø The programme of Government of India should comprise promoting use of PV technology to provide lighting in villages, in the form of Community lighting systems, Portable solar lanterns, Street lights, Fixed home lighting systems, Water Pumping.

Ø Reliefs by government to SPV manufacturers and users of SPV based products should be in the form of:

· 100% depreciation in the first year of installation of the systems.

· Benefits in the form of various tax exemptions for manufacturers and users.

· In order to boost for the renewable energy especially solar energy, the capital subsidy / reimbursement for the installation of the solar panels should be given.

· For every manufacturing industry, certain amount of power requirement should be made compulsorily met by captive generation.

· Incentives for Solar farming should be given.

· The limit of Rs. 1,000 crore investments in Photovoltaic industry for eligibility of capital subsidy should be reduced to Rs. 500 crore.

· Budget allocation should be made for Govt. Investment in power generation through solar technology.

· A reserve should be created for the research and development in photovoltaic industry like in US.

· No import tariff for several imported machineries, raw materials and components

· Soft loans to users, intermediaries and manufacturers.

· Create a suitable legal environment that enables and simplifies innovation and entry of solar related projects.

· Set challenging but realistic access goals that incorporate important reform milestones and depict overall development in the solar sector.

· Institutional reforms and strong focus on implementing agencies so that they are sufficiently independent, decentralized, accountable and have strong leadership.

· Regulatory reforms that promote innovation and allow entry of alternative service providers including the private sector.

· Improve in hesitancy of banks and financial institutions for granting of Working Capital for Start-Up Entrepreneurs

· Money for creating innovative schemes is required in the case of solar photovoltaic. Consumer financing for solar PV business in general and entrepreneurs in particular.

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About Euro Multivision Limited

Euro Multivision Limited (“EML” or the “Company”) is the second largest company engaged in the manufacturing of CDRs and DVDRs after Moser Baer India Limited. (Source: Optical Disk Manufacturers Welfare Association).

Incorporated in the year 2004, the Company has set up a plant for the manufacture of Compact Disc Recordables (CDRs) and Digital Versatile Disc Recordables (DVDRs). It commenced commercial production in April, 2005 with five manufacturing lines having an installed capacity of 7.20 crore units of CDRs and 72 lakh units of DVDRs a year. After successfully operating five lines in the first year of its commercial operation, the Company expanded its capacity by adding another five manufacturing lines in the second half of financial year 2006-07 taking the total to 10 manufacturing lines with a total installed capacity of CDRs to 18 crore units a year. These lines are interchangeable and are convertible to manufacture DVDR as and when the requirement arises. Also these lines are compatible for manufacturing of pre recorded CD’s and DVD’s. In the same financial year, the DVDR manufacturing line was converted into CDR manufacturing line. The CDR production is fully stabilized and is operating on full capacity.

EML’s manufacturing facility is situated at Taluka Bhachau, Kutch, Gujarat, which ensures international quality standards with optimum utilization of installed capacities. The major parts of the manufacturing facility are procured from VDL ODMS B.V, Netherlands which is one of the leading suppliers for CDR manufacturing technology. Further, the manufacturing facility operates in Class 10,000 (class 10,000 clean rooms, which enable it to produce clean, sterile, aseptic and dust-free products and components) environment with antistatic work stations. The manufacturing facility is completely powered by a captive power plant for uninterrupted supply.

EML proposes to build a photovoltaic solar cell manufacturing unit with a capacity of 40MW per year at a total cost of Rs. 167.56 crore at Taluka Bhachau, Dist- Kutch, Gujarat. Company proposes to set up this photovoltaic plant in a Special Economic Zone to be developed by them.