Lok Sabha Question No. 2620 (UNSTARRED), answered on 2018-12-27
Subject: Solar/Power Production
Ministry: NEW AND RENEWABLE ENERGY
Asked by: A.P. JITHENDER REDDY

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY LOK SABHA UNSTARRED QUESTION NO-2620

TO BE ANSWERED ON-27.12.2018

## SOLAR/POWER PRODUCTION

## 2620. SHRI A.P. JITHENDER REDDY

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

(a)  whether  the  domestic  manufacturers  account  only  around  10  per  cent  of  solar  power production in the country and if so, the details thereof;

(b) the steps taken by the Government to boost the market share of domestic manufacturers;

(c) whether the value of rupee has any effect on the price of setting up of solar plants in the country and if so, the details thereof;

(d) the steps taken by the Government to ensure that loans to renewable energy projects do not convert into non-performing assets; and

(e)  the  number  of  tenders,  with  total  power-generation  capacity  for  solar  power  projects floated since 2014 along with the number of tenders that had no successful bidder and the number of tenders that were under-subscribed?

## ANSWER

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

(a) As per the Report No. 4/01/2018-DGTR, dated 16th July, 2018, of Directorate General of Trade Remedies, regarding the Safeguards Duty investigation on imported solar cells/modules, the Indian production of solar cells/modules, during the year 2017-18 was 842 MW (annualised figure based on production upto Sep'2017) as against the import of 9790 MW. Thus, the Indian production of solar cells/modules was around  8% of total demand during this period.

(b) The solar power projects being implemented by the Central Public Sector Undertakings (CPSUs) with financial support from the 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.

The Ministry of New & Renewable Energy (MNRE) vide its O.M. No. 146/57/2018-P&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.

Further, Ministry of Finance, through notification no. 01/2018-Customs (SG) dated 30th July, 2018,  have  imposed  Safeguard  duty  on  import  of  solar  cells  whether  or  not  assembled  in modules or panels.

(c) Value of rupee will have an effect on price of solar power plant depending upon the share of imported material/ equipment deployed in the solar power plant and would vary from case to case.

(d)  Solar  power  plants  are  largely  being  set  up  under  a  fair  and  transparent  competitive bidding mechanism. Government have issued 'Guidelines' which provide adequate safeguards against unilateral termination/ amendment of Power Purchase Agreement (PPA). Further, the said Guidelines also provide for a robust Payment Security Mechanism thereby increasing he bankability of the projects and investor confidence.

(e)  Since  2014,  around  33  number  of  tenders  for  purchase  of  solar  power,  aggregating  to around 25GW capacity, have been floated and closed, under the aegis of Ministry of New & Renewable Energy, through Solar Energy Corporation of India Limited (SECI) and NTPC Limited. Out of these, there were no tenders that had no successful bidder, and only 2 tenders were undersubscribed.

In  addition  to  above,  around  64  tenders  aggregating  to  around  32GW  of  solar  power  were also  floated  by  different  States  during  this  period.  Out  of  these,  around  7  tenders  were undersubscribed.

*****