From motorcycles to bill payments, the Hero Group has diversified into a number of businesses over the past few years. But the entry into renewable energy is probably the most ambitious till now for the group. Business Line caught up with Rahul Munjal, who is heading the new initiative, to know the company’s plans. Excerpts from the interview:

Why has the Hero Group ventured into renewable energy?

We wanted to diversify into a business that’s scalable and that has a social impact. We shortlisted a number of options and zeroed in on renewable energy because of the opportunity it presents. India as of now has 30 GW capacity, for which a number of companies have invested close to Rs 2.10 lakh crore. But still this sector is not on the forefront due to perceptions around pricing. We hope to change the perceptions.

Is it only a perception? Renewable energy is expensive compared to traditional sources, isn’t it?

It used to be but as of today it is not expensive compared to coal. Besides, coal is subsided in India. If you are to price coal on market mechanism then renewable is cheaper.

We have told the Government to remove all sops from coal and let everyone compete at par. We don’t want to be a sop-driven industry.

Will you be interested in projects under the Solar Mission?

Yes, we are looking forward to the next JNNSM (Jawaharlal Nehru National Solar Mission).

It will be a large part of our plans.

What’s your reaction to the dispute at WTO?

We believe that all governments have a role to promote domestic industry but blocking any specific technology does not help.

Which markets are you looking at outside India?

It’s still very early days for us. Internationally people are moving to renewables. For us India will be the focus for the next 2-3 years. But definitely we have global plans.

What about the investments?

We are taking it year by year. We want to be a 1 GW player so we will make the desired investment required for that.

Initially the Group will fund but eventually we will look at outside investment.

What targets have you set?

By 2016-17, the new venture will be among the top 2-3 companies within Hero Group.

If we become a GW player then we will become among the top three in the entire sector but I hear some announcements where companies are talking about 4 GW or 5 GW. I am not sure that’s possible to do in India. If it can be done then we will revaluate. My objective is to be among the top three by 2016.

> thomas.thomas@thehindu.co.in

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