Govt to Focus on Domestic Manufacturing of Solar PV Cells and Modules

In a written reply in the Lok Sabha Shri R.K. Singh, Union Minister for Power and New and Renewable Energy stated that 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. It also targets direct employment to 30,000 people and indirect jobs to 1.2 lakh people.

The Union Cabinet approved a ₹ 4,500 crore production-linked incentive (PLI) scheme namely, ‘National Programme on High Efficiency Solar PV Modules’ to boost domestic manufacturing capacity of solar PV modules.

In order to further enhance domestic manufacturing of solar PV cells and modules, the Government has taken the following steps:

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) has 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 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 has inter-alia, prescribed that in public procurement of items in respect of which there is sufficient local capacity and local competition. 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, namely CPSU Scheme Phase-II, PM-KUSUM and Gridconnected 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 imposition of Basic Customs Duty (BCD) on import of solar PV cells and modules with effect from 01.04.2022.

Discontinuation of Customs Duty Concession benefits. The Ministry of Finance has rescinded its earlier Notification thereby withdrawing the benefit of concessional customs duty on the items imported for initial setting up of the solar power projects with effect from 02.02.2021.