The Indian renewable energy sector is the fourth most attractive renewable energy market in the world.
India was ranked fifth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2019, an India Brand Equity Foundation (IBEF) report pointed out.
The report further added that Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 17.33 percent between FY16-20.
India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.
The Government of India plans to establish a renewable energy capacity of 523 GW (including 73 GW from Hydro) by 2030.
For the solar energy sector, on 07.04.2021, the Cabinet approved a Production Linked Incentive (PLI) Scheme, ‘National Programme on High-Efficiency Solar PV Modules’, with an outlay of Rs. 4,500 crore.
The Cabinet also approved another Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights), with an outlay of Rs. 6,238 crore, the same is not intended for the solar energy sector. Solar PV cells and modules are already being manufactured in the country, the Ministry of New and Renewable Energy of India said.
They further added that the ‘National Programme on High-Efficiency Solar PV Modules’ will generate direct employment for 30,000 people and indirect jobs for 1.2 lakh people.
The ‘National Programme on High-Efficiency Solar PV Modules’ targets an additional 10,000 MW of integrated domestic manufacturing capacity of high-efficiency solar PV modules with an investment of around Rs.17,200 crore.
In order to enhance the domestic manufacturing of solar PV cells and modules, the Government of India has taken the following steps:
Modified Special Incentive Package Scheme (M-SIPS) Scheme of Ministry of Electronics & Information Technology: The scheme mainly provides subsidy for capital expenditure – 20 percent for investments in Special Economic Zones (SEZs) and 25percent in non-SEZs.
Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules: In order to enhance India’s manufacturing capabilities and exports, the Ministry of New & Renewable Energy (MNRE) issued the Scheme Guidelines for ‘National Programme on High-Efficiency Solar PV Modules’, with an outlay of Rs. 4,500 crores.
The Scheme has provisions for supporting the setting up of integrated manufacturing units of high-efficiency solar PV modules by providing Production Linked Incentive (PLI) on sales of such solar PV modules.
Preference to ‘Make in India’ in Public Procurement in Renewable Energy Sector: Ministry of New & Renewable Energy (MNRE) vide its Order No. 283/22/2019-GRID SOLAR dated 09.02.2021, has inter-alia, prescribed that in public procurement of items in respect of which there is sufficient local capacity and local competition, only Class-I local supplier shall be eligible to bid.
Class-I local supplier means a supplier or service provider, whose goods, services, or works offered for procurement, has local content equal to or more than 50 percent. Solar PV modules are one of the products identified as having sufficient local capacity and competition.
Domestic Content Requirement (DCR): Under some of the current schemes of the Ministry of New & Renewable Energy (MNRE), namely CPSU Scheme Phase-II, PM-KUSUM and Grid connected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.
Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has announced the imposition of Basic Customs Duty (BCD) on import of solar PV cells and modules with effect from 01.04.2022.
This information was given by Shri R.K. Singh, Union Minister for Power and New and Renewable Energy in a written reply in Lok Sabha.
