Lok Sabha Question No. 980 (UNSTARRED), answered on 2019-06-27
Subject: Manufacturing of Solar Panels
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Sougata Ray

980. Prof. Saugata Roy

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

- (a) whether Government proposes to take necessary steps to start the manufacturing of Solar Panel in view of import of major portion from China;
- (b) if so, the details, thereof;
- (c) whether the Government proposes to change the solar panel manufacturing policy of existing 100% foreign investment as equity and automatic approval; and
- (d) if so, the details thereof?

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENRGY

## LOK SABHA UNSTARRED QUESTION NO. 980

TO BE ANSWERED ON 27.06.2019

## MANUFACTURING OF SOLAR PANELS

## ANSWER

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

- (a) and (b) The solar panels are already being manufactured in the country by both public and private sector enterprises. The installed domestic manufacturing capacity of solar modules is around 10 GW and that  of  solar  cells  is  around  3  GW.  Further,  domestic  manufacturing  of  solar  cells  and  modules  is supported by Government of India by following initiatives:
- a.) 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).
- b.) 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.
- c.) 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 procurement 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.
- d.) 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)  and  (d)  As  per  the  extant  Consolidated  FDI  Policy  Circular  of  2017  provides  that  subject  to  the provisions  of  the  FDI  policy,  foreign  investment  in  'manufacturing'  sector  is  under  automatic  route. Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval.

The Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains attractive & investor friendly destination.

*****