A number of steps taken to make India self-reliant in solar PV module manufacturing as well as their exports: Power minister


The Ministry of New & Renewable Energy (MNRE), Government of India, has been consistently bringing out policies for developing and facilitating domestic solar module manufacturing in the country. Some of the recent initiatives, inter-alia, include:

Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: The Government of India is implementing the Production Linked Incentive (PLI) Scheme under National Programme on High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore. This Scheme has provision for Production Linked Incentive (PLI) to the selected solar PV module manufacturers for five years post commissioning, on manufacture and sale of High Efficiency Solar PV modules.

Domestic Content Requirement (DCR): Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Component B 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.

Preference to ‘Make in India’ in Public Procurement: Through implementation of ‘Public Procurement (Preference to Make in India) Order’, procurement and use of domestically manufactured solar PV modules and domestically manufactured solar inverters has been mandated for Government/ Government entities.

Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and modules, with effect from 01.04.2022.

Discontinuation of Customs Duty Concessions: MNRE has discontinued issuance of Customs Duty Concession Certificates for import of material /equipment for initial setting up of solar PV power projects with effect from 02.02.2021.

The above mentioned steps are aimed at making India self-reliant in solar PV module manufacturing as well as at enabling India to cater to export market for solar PV modules for solar power installations in foreign countries.

In order to address the challenges related to land acquisition for setting up renewable power projects, MNRE has several steps, which inter-alia, include:

MNRE is implementing Scheme for Development of Solar Parks and Ultra-Mega Solar Power Projects, under which, the infrastructure such as land, roads, transmission system (internal and external), pooling stations, etc. is developed with all statutory clearances / approvals. Thus, the solar project developers have plug and play benefit.

Under the Mode 8 of the Solar Park Scheme, a facilitation charge of Rs. 0.05/unit of power being generated from the projects in the parks is provided to the States in order to encourage the State Governments to provide necessary assistance to the Solar Power Park Developers (SPPDs) in identification & acquisition of land, to facilitate in obtaining all required statutory clearances, etc.

Further, MNRE has written to State Government for easing out and facilitating the renewable power projects with respect to land related issues.

This information was given by the Union Minister of Power Sh. R.K. Singh in the Rajya Sabha.