India Reaffirms Strict Vigilance On Solar PV DCR Compliance Under MNRE Schemes

The Indian government, through the Ministry of New and Renewable Energy (MNRE), has long supported domestic manufacturers of solar PV cells and modules, primarily through a policy known as Domestic Content Requirement (DCR), where permitted by the World Trade Organization (WTO). This policy aims to promote the growth of the domestic solar industry and reduce dependence on imports.

To ensure the integrity of this policy and prevent its misuse, the MNRE issued an Office Memorandum (O.M.) on February 20, 2018. According to this O.M., in cases where DCR is mandated in a manner compliant with WTO regulations for solar PV power projects under MNRE schemes or programs, strict actions will be taken against any violations.

These actions include filing criminal cases under relevant sections of the Indian Penal Code, such as IPC 420, which pertains to fraud. Additionally, developers found in violation may face blacklisting for up to 10 years, forfeiture of relevant bank guarantees, disciplinary action against responsible officers from central public sector units (CPSUs) or state governments, and any other appropriate measures.

However, concerns have resurfaced regarding the supply of solar PV modules under MNRE schemes or programs that may not fully comply with the DCR provisions specified in the respective schemes or programs. In response, the MNRE has reiterated the importance of strict compliance with DCR provisions mandated under its schemes or programs. It warns that any violations will result in the same stringent actions outlined in the previous memorandum.

The reiteration of these guidelines underscores the government’s commitment to upholding the integrity of its solar energy policies and promoting the growth of the domestic solar industry. By ensuring adherence to DCR provisions, the government aims to foster a competitive environment that supports local manufacturers while advancing India’s renewable energy goals.

This reaffirmation of the MNRE’s stance comes with the approval of the competent authority, emphasizing the seriousness with which the government views compliance with DCR provisions in solar PV projects under its purview.

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