Lok Sabha Question No. 3744 (UNSTARRED), answered on 2016-12-08
Subject: Indigenous Manufacturing of PV Panels
Ministry: NEW AND RENEWABLE ENERGY
Asked by: ABHISHEK SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY LOK SABHA UNSTARRED  QUESTION NO. 3744 TO BE ANSWERED ON 08.12.2016

## INDIGENOUS MANUFACTURING OF PV PANELS

## 3744.  SHRI ABHISHEK SINGH:

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

(a) whether the major portion of  country's  solar  panel  requirement  especially  photovoltaic panels are met through imports from China, if so, the details thereof and the reasons therefor and the steps being taken by the Union Government to promote indigenous manufacturing of such solar panels;

(b) whether  the  Union  Government  proposes  to  formulate/have  formulated  any  national policy to develop indigenous solar power manufacturing in the country, if so, the details thereof; and

(c) the  investment  received  so  far  under  make  in  India  programme  in  new  and  renewable energy sector and the efforts being made by the Union Government to increase the same?

## ANSWER THE MINISTER OF STATE FOR POWER, COAL, NEW AND RENEWABLE ENERGY & MINES (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a): Yes, Madam. The details of imports of Solar Cells/Photovoltaic Cells/Photo Cells from China are given in the Annexure.

India does not have enough manufacturing capacity currently for cells and modules to cover its full demand. The development of solar power in the country is taking place with indigenous as well  as  imported  solar  equipment  and  components.  In  order  to  make  National  Solar  Mission (NSM) a success,    the  Government  has  launched  several  schemes  and  is  providing  following benefits to indigenous manufacturers:-

· concessional excise and custom duties,

· providing  capital  subsidy  for  setting  up  of  manufacturing  units  for  solar  cells  and modules and the entire value chain under Modified Special Incentive Package Scheme (M-SIPS) programme of Ministry of Electronics and Information Technology.

(b): The Government is supporting domestic solar PV manufacturing by various means and incentives.  However,  there  is  no  exclusive  national  policy  to  develop  indigenous  solar  power manufacturing  in  the  country.  As  mentioned  in  part  (a)  of  the  reply  above,  the  Government provides capital subsidy for setting up of manufacturing units for solar cells and modules and the entire  value  chain  under  M-SIPS  programme  of  Ministry  of  Electronics  and  Information Technology.

- (c): The  Department  of  Industrial  Policy  and  Promotion  has  reported  that  Foreign  Direct Investment  (FDI)  equity  inflow  is  not  maintained  for  initiative/scheme-wise.  However,  FDI equity inflow after  'Make in India' programme is reported as below:

| Sl No   | Year            | FDI in US$ million   |          |
|---------|-----------------|----------------------|----------|
| 1       | 2014-15 Oct-Mar |                      | 239.50   |
| 2       | 2015-16         |                      | 776.51   |
| 3       | 2016-17 Apr-Sep |                      | 376.02   |
|         | Grand Total     |                      | 1,392.03 |

Further, FDI up to 100 per cent is allowed under the automatic route in renewable energy sector.

*********

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 3744 FOR  ANSWER ON 8.12.2016

| INDIA'S IMPORT UNDER HS CODES 85414011 AND 85414019          | INDIA'S IMPORT UNDER HS CODES 85414011 AND 85414019                    | INDIA'S IMPORT UNDER HS CODES 85414011 AND 85414019                    | INDIA'S IMPORT UNDER HS CODES 85414011 AND 85414019                    |
|--------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
| ALL INDIA IMPORT VIS-À-VIS IMPORT FROM CHINA                 | ALL INDIA IMPORT VIS-À-VIS IMPORT FROM CHINA                           | ALL INDIA IMPORT VIS-À-VIS IMPORT FROM CHINA                           | ALL INDIA IMPORT VIS-À-VIS IMPORT FROM CHINA                           |
| YEAR                                                         |                                                                        | (VALUES IN MILLION USD)                                                |                                                                        |
|                                                              |                                                                        | Value                                                                  | Value                                                                  |
|                                                              | Import from                                                            | HS-85414011                                                            | HS- 85414019                                                           |
| 2013-14                                                      | All India Import                                                       | 711.15                                                                 | 39.72                                                                  |
| 2013-14                                                      | Import from China                                                      | 596.75                                                                 | 31.55                                                                  |
| 2013-14                                                      | %Share of China                                                        | 83.91                                                                  | 79.42                                                                  |
| 2014-15                                                      | All India Import                                                       | 820.95                                                                 | 88.78                                                                  |
| 2014-15                                                      | Import from China                                                      | 603.34                                                                 | 43.39                                                                  |
| 2014-15                                                      | %Share of China                                                        | 73.49                                                                  | 48.88                                                                  |
| 2015-16                                                      | All India Import                                                       | 2344.56                                                                | 64.58                                                                  |
| 2015-16                                                      | Import from China                                                      | 1960.26                                                                | 49.96                                                                  |
| 2015-16                                                      | %Share of China                                                        | 83.61                                                                  | 77.37                                                                  |
| 2016-17 (April to September)                                 | All India Import                                                       | 948.88                                                                 | 27.84                                                                  |
| 2016-17 (April to September)                                 | Import from China                                                      | 825.98                                                                 | 24.21                                                                  |
| 2016-17 (April to September)                                 | %Share of China                                                        | 87.05                                                                  | 86.95                                                                  |
| NOTE: The figures for 2016-17 (Apr to Sep.) are provisional. | NOTE: The figures for 2016-17 (Apr to Sep.) are provisional.           | NOTE: The figures for 2016-17 (Apr to Sep.) are provisional.           | NOTE: The figures for 2016-17 (Apr to Sep.) are provisional.           |
| HS-85414011                                                  | SOLAR CELLS/PHOTOVOLTAIC CELLS WHETHR OR N0T ASSEMBLED IN M0DULE/PANEL | SOLAR CELLS/PHOTOVOLTAIC CELLS WHETHR OR N0T ASSEMBLED IN M0DULE/PANEL | SOLAR CELLS/PHOTOVOLTAIC CELLS WHETHR OR N0T ASSEMBLED IN M0DULE/PANEL |
| HS-85414019                                                  | OTHER PHOTOCELLS                                                       | OTHER PHOTOCELLS                                                       | OTHER PHOTOCELLS                                                       |