Govt plans Rs 30K cr corpus to establish integrated solar manufacturing facilit

Subsidy package to be given on basis of reverse bidding

To encourage companies to set up integrated solar manufacturing units in the country, the government will come out with a brand new policy to aid equipment makers by disbursing Rs 30,000 crore as subsidy.  

“Project details are being prepared by the Ministry of New and Renewable Energy and soon it will be sent for cabinet approval”, a senior official in the ministry told Deccan Herald.

Integrated solar manufacturing units will produce everything from solar cells, solar photovoltaic modules, ingots and wafers. The subsidy support will be given on the basis of a reverse bidding process so those interested in setting up such plants can bid for the least amount of subsidy required to be competitive in the market, he said.

“Under the project, the government plans to distribute total Rs 30,000 crore worth subsidy to manufacturers and will also give them business assurances,” he said. 
 
The proposed policy is being prepared following the suggestions from an inter-ministerial panel that was set up by the department of industrial policy and promotion.

The government has revised the target of National Solar Mission (NSM) from 20,000 mW to 1,00,000 mW by 2022. Out of which, 40,000 mW is to come through grid connected solar rooftop systems. For roof top solar project, the Centre is also planning to invest $2.5 billion (Rs 16,800 crore) in the next four years. This expects large scale demand for equipment as the implementation of the scheme picks up pace in coming days, said an official. 

Solar manufacturers in India largely assemble equipment from components imported from China. Though the government’s solar mission offers subsidies to solar developers sourcing components from local manufacturers, it faced challenge at the World Trade Organisation after India lost a case filed by the US on the issue.

To avoid confrontation at WTO, the government’s proposed policy will encourage overseas companies to set up manufacturing units in the country as part of the Make in India initiative, said the official.