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Ministry Amends Tender For Establishing Green Energy Equipment Manufacturing Zones

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The Ministry of Power revised the tender issued last month to establish manufacturing zones for power and renewable energy equipment. The deadline for submitting proposals now is June 26, which was originally set for June 8, 2022.

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Following approval of the detailed project report (DPR), the special purpose vehicle (SPV) will begin executing works related to the common infrastructure or testing facility in cooperation with the Central Power Research Institute, National Institute of Wind Energy (NIWE), and National Institute of Solar Energy (NISE), according to the amendments.

After the clearance of DPR, work on the common testing facility must be accomplished within 36 months, and work on the common infrastructure facility must be finished within 18 months.

Solar elements such as modules, back sheets, ingots, inverters, module mounting structures, and nacelles will be produced in the manufacturing zone, along with wind components such as hubs, nacelles, shafts, and blades.

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Concerning the approval of private players to take part as an SPV with state governments, the Ministry clearly stated that a private entity or a central public sector undertaking (CPSU) in collaboration with the state government could submit a proposal to establish manufacturing zones in their respective states. They should create a joint venture business in which the state shall own at least 26% shares. 

States are not required to establish an SPV. A request to establish a manufacturing zone in collaboration with the state government might be submitted by the state government, a state government body, or a state PSU.

The ministry stated that private businesses might depart the project after establishing industrial facilities in at least 50% of the designated region, or after 10 years, whichever comes first.

In response to a stakeholder’s question on whether anybody may establish manufacturing activities within the zone in a plug-and-play way, the ministry stated that the manufacturing zone will be open to any investor.

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A new condition specifies that the SPV should give land to manufacturers for outright sale or long-term lease for a minimum of 35 years, or for a shorter duration if requested by manufacturers. The SPV will allot the land in accordance with the proposed lease rental rates and terms and conditions.

The Ministry said that 150 acres of land should be made available for individual manufacturing units. The availability of land for the building of a common testing facility should be adequate for a testing facility that may be necessary for the renewable and power equipment to be made in the manufacturing zone.

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