Lok Sabha Question No. 2956 (UNSTARRED), answered on 2019-07-11
Subject: Manufacturing of Solar Panels
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Pushpendra Singh Chandel

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENRGY

## LOK SABHA UNSTARRED QUESTION NO. 2956

TO BE ANSWERED ON 11.07.2019

## MANUFACTURING OF SOLAR PANELS

2956. Shri Kunwar  Pushpendra Singh Chandel

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

- (a)  whether  the  Government  proposes  to  formulate  a  new  policy  regarding  manufacturing  of solar panels in India;
- (b) if so, the details thereof;
- (c) whether the import of solar products from China is very high and if so, the details thereof;
- (d)  whether  the  Government  proposes  to  establish  a  big  solar  products  manufacturing  unit  in Bundelkhand region of Uttar Pradesh;and
- (e) if so, the details thereof;

## ANSWER

## THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY AND POWER (SHRI R. K. SINGH)

- (a) and (b) The Domestic manufacturing of solar cells and modules is already being supported by Government of India by way of following initiatives:
1. Domestic  manufacturing  of  solar  cells  and  panels  in  India  is  being  supported  by  the Government of India through Modified Special Incentive Package Scheme (M-SIPS) of Ministry of Electronics & Information Technology. The scheme, inter alia, provides for:
- i. 20-25% subsidy for investments in capital expenditure for setting up of the manufacturing facility.
- ii. Reimbursement of countervailing Duty (CVD)/ Excise Duty for capital equipment for the units outside Special Economic Zone (SEZ).
2. The solar power projects being implemented by the Central Public Sector Undertakings (CPSUs)  with  financial  support  from  Government  and  those  rooftop  solar  projects  which  are implemented with central financial assistance are mandated to source their requirement of solar cells & panels from domestic sources as per extant Guidelines, in a World Trade Organization (WTO) compliant manner.
3. The  Ministry  of  New  &  Renewable  Energy  (MNRE)  vide  its  O.M.  No.  146/57/2018P&C dated 11.12.2018 regarding 'Implementation of Public Procurement (Preference to Make in India) Order for Renewable Energy sector' has stipulated that apart from civil construction, preference shall be provided in Central Ministries/Department and Central PSUs to domestically manufactured/produced  products  such  as  solar  PV  modules  and  other  components  such  as inverters,  etc.  for  Grid  connected  solar  power  projects.  Minimum  Percentage  of  local  content required is 100% in case of solar modules and 40% for other components such as inverter. etc.
4. Further, Ministry of Finance, through notification no. 01/2018-Customs (SG) dated 30th July,  2018,  has  imposed  Safeguard duty on import of solar cells whether or not assembled in modules or panels.
- (c) As per the Export-Import data maintained by Department of Commerce, the total quantum of import of 'Solar cells whether or not  assembled into module/panel', during the  year 2018-19 amounted to around Rs. 15,105 crore out of which imports from China constituted around Rs. 11,842 crore.
- (d) and (e) No such proposal is presently there with the Government of India.