Lok Sabha Question No. 4338 (UNSTARRED), answered on 2020-03-19
Subject: Incentives for Renewable Energy Technology
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Aparajita Sarangi

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 4338

TO BE ANSWERED ON 19.03.2020

## INCENTIVES FOR RENEWABLE ENERGY TECHNOLOGY

## 4338. SHRIMATI APARAJITA SARANGI

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

- (a) whether  the  Government  has  any  scheme/plan  to  incentivise  the  local  development including  manufacturing  of  renewable  energy  technology  but  not  limited  to  solar  and wind capture technologies;
- (b) if so, the details thereof along with any incentives disbursed to the public;
- (c) whether the Government has collaborated with the Ministry of Finance through its Make in India campaign to achieve such development; and
- (d) if so, the details thereof?

## ANSWER

THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY, POWER and MoS for  SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI R.K. SINGH)

(a) & (b) The Government has taken a number of initiatives for incentivising local development in manufacturing of renewable energy technologies, namely:

(i)  Preference to 'Make in India' in Renewable Energy Sector: Ministry of New & Renewable Energy  (MNRE)  vide  its  O.M.  No.  146/57/2018-P&C  dated  11.12.2018  has  prescribed  the minimum  percentage  of  local  content  required  for  all  major  categories  of  renewable  energy projects  like  hydro  power  projects,  wind  power  projects,  off-grid/  decentralised  solar  power projects,  grid  connected  solar  power  projects,  biomass  gasifier  projects,  biomass  cogeneration projects, municipal solid waste (MSW) projects and waste to energy (biogas /bio-CNG) projects and has also stipulated that in such projects, apart from civil construction, preference   shall   be provided      by      Central      Ministries/  Department      and      Central      PSUs      to  domestically manufactured/ produced   products.

(ii)  Imposition  of  Safeguard  Duty  on  import  of  solar  PV  cells  &  modules:  Based  on  the  final findings  of  Directorate  General  of  Trade  Remedies  (DGTR)  in  investigations  concerning imposition  of  Safeguard  Duty  on  import  of  solar  cells/  modules,  the  Government,  through notification no.  01/2018-Customs (SG) dated 30 th July, 2018, have imposed Safeguard duty on import of solar cells whether or not assembled in modules or panels.

(iii)    Implementation  of  WTO  compliant  Domestic  Content  Requirement:  Under  the  current schemes of the Ministry of New & Renewable Energy (MNRE) like CPSU Scheme Phase-II, PM-KUSUM  and  Grid-connected  Rooftop  Solar  Programme  Phase-II,  wherein  government subsidy  is  given,  it  has  been  mandated  to  source  solar  PV  cells  and  modules  from  domestic sources, as per extant Guidelines, in a WTO compliant manner.

(iv)    Manufacturing  linked  power  project  tenders:  Solar  Energy  Corporation  of  India  Limited (SECI) has  concluded bidding for a  tender  for  setting  up  of  Solar  PV  Power  plants  linked  to setting up of Solar PV Manufacturing facilities.

(v) Incentives to domestic manufacturing in Wind sector: Government is promoting manufacture of wind turbine generators in India through fiscal incentives such as concessional custom duty exemptions on import of critical components which includes (a) Gear box, (b) yaw component, (c) wind turbine controllers, (d) special bearings,  (e) parts of items from (a) to (d), (f) Blades and its  parts,  sub  parts  and  raw  materials  of  blades  (g)  Permanent  magnets  for  Wind  Turbine Generator (WTG) capacity above 500 kW, (h) Forged steel rings required for manufacturing of special  bearing  of  WTG    as  per  Ministry  of  Finance  notification  no.  50/2017-  customs  dated 30.06.2017. This incentive is applicable to manufacturers only.

Under CPSU Scheme Phase-II / Government Producer Scheme, Viability Gap Funding (VGF) of around Rs. 319 crore has been released till date.

(c) & (d) In pursuance to 'Make in India' campaign of Government of India, 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 prescribed the minimum percentage of local content required for all major categories  of  renewable  energy  projects  and  has  stipulated  that  apart  from  civil  construction, preference   shall   be   provided   by   Central   Ministries/Department   and   Central   PSUs   to domestically manufactured/ produced   products   for small hydro power projects, wind power projects,  off-grid/  decentralised  solar  power  projects,  grid  connected  solar  power  projects, biomass gasifier projects, biomass cogeneration projects, municipal solid waste (MSW) projects and waste to energy (biogas /bio-CNG) projects.

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