‘Cleantech' or ‘clean technology' is a term associated with sectors focussed on preserving the environment. The umbrella term is differentiated from green technology, wherein cleantech signifies investments in the green technology space, which includes sub-sectors such as solar cells/wind turbine manufacturing, e-waste management, water purification and bio fuels among others.
Globally, the market for cleantech products and services is nearly USD 300 billion which is expected to grow to 1.7 trillion by 2017, according to a report by market research engine, Reportlinker.com. Venture capital (VC) firms are vying for cleantech companies hoping to cash in on the boom in the cleantech industry. During the period July-September 2008, the industry attracted approximately USD 2.6 billion in venture investments across North America, Europe, China and India resulting in a cumulative USD 6.6 billion being invested in the first three quarters of 2008 according to the Cleantech Group, a clean technology dedicated advisory firm. India received USD 6.3 million from two deals alone in the third quarter of 2008 compared to USD 111 million across seven deals as reported in China.
According to IndiQuest Research in August-September 2008, cleantech deals in India accounted for approximately 10 percent of the total number of deals concluded in the country in that period. The two top deals in the cleantech sector were Moser Baer Photo Voltaic Limited (Solar cell manufacturing) and Biotor Industries Ltd (Bio fuels).
IndiQuest's preliminary research shows that India has potential in being a major destination for cleantech investments in the future. The country has managed to attract VC investments across various sub-sectors, indicating that VCs are currently testing waters in the country. Sectors such as bio fuels, and energy infrastructure and generation are expected to receive greater investments from PE/VC firms due to government support in terms of subsidies offered to companies operating in these fields.
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