Lok Sabha Question No. 537 (UNSTARRED), answered on 2021-02-04
Subject: Cost of Solar Panels
Ministry: NEW AND RENEWABLE ENERGY
Asked by: S. Jagathrakshakan

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-537

ANSWERED ON-04.02.2021

## COST OF SOLAR PANELS

## 537. SHRI S. JAGATHRAKSHAKAN

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

- (a) the whether the Government is aware that the domestic manufacturing sector needs doses of reforms and reliefs to match the cost of solar panels from China and if so, the details thereof;
- (b) whether a long-term perspective to manufacturing industry coupled with tariff and nontariff barriers can make our domestic manufacturing sector truly 'Atmanirbhar' and if so, the details thereof; and
- (c) the measures taken/being taken by the Government thereto?

## ANSWER

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

(SHRI R.K. SINGH)

(a) Yes Sir.

The Directorate General of Trade Remedies (DGTR) in its findings dated 18.07.2020 in matter of review investigation for continued imposition of Safeguard Duty on imports of 'Solar Cells whether or not assembled in modules or panels' into India, has stated that the imports of solar cells  and  modules  in  India  have  not  only  continued  to  cause  serious  injury  to  the  Domestic Industry  but  also  threaten  to  cause  serious  injury  to  the  domestic  producers  of  solar  cells  and modules.

(b) & (c) The Government has set a target of 450 GW of renewable power by year 2030, which would inter-alia, require addition of around 30 GW of solar power per annum for around next 10 years, thereby providing a long-term perspective for solar manufacturing industry.

In order to enhance India's manufacturing capabilities and enhancing exports under Atmanirbhar Initiative, on 11.11.2020, the Government has approved the introduction of Production Linked Incentive (PLI) Scheme in ten sectors, including High Efficiency Solar PV Modules. The outlay for PLI Scheme for High Efficiency Solar PV Modules is Rs. 4,500 crores.

In addition to PLI, the Government has taken following measures to support domestic solar PV manufacturing:

(i) Modified Special Incentive Package Scheme (M-SIPS) Scheme of Ministry of Electronics & Information Technology: The scheme mainly provides subsidy for capital expenditure - 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The Scheme was open to receive applications till 31 st December, 2018. (ii) Preference to 'Make in India' in Public Procurement in Renewable Energy Sector: Ministry of  New  &  Renewable  Energy  (MNRE)  vide  its  Order  No.  283/22/2019-GRID  SOLAR  dated 23.09.2020,  has  inter-alia,  prescribed  that  in  public  procurement  of  solar  PV  modules  and inverters,  only  Class-I  local  supplier  shall  be  eligible  to  bid.  Class-I  local  supplier  means  a supplier or service provider, whose goods, services or works offered for procurement, has local content equal to or more than 50%. (iii)  Imposition  of  Safeguard  Duty  on  import  of  solar  PV  cells  &  modules:  The  Government, through  notification  no.    01/2018-Customs  (SG)  dated  30 th July,  2018,  and  notification  no. 02/2020-Customs (SG) dated 29 th July,  2020,  has  imposed Safeguard Duty on import of solar cells whether or not assembled in modules or panels. (iv)    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.

(v)  Increased  duty  on  solar  inverters  and  solar  lanterns:  To  encourage  domestic  production, Government has raised duty on solar invertors from 5% to 20%, and on solar lanterns from 5% to 15%.

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