Lok Sabha Question No. 1809 (UNSTARRED), answered on 2021-02-11
Subject: Domestic Production of Solar Cells
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Uttam Kumar Nalamada Reddy

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-1809

ANSWERED ON-11.02.2021

## DOMESTIC PRODUCTION OF SOLAR CELLS

## 1809. SHRI UTTAM KUMAR REDDY NALAMADA

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

- (a) whether the Government proposes to achieve its objective of generating 100 GW of Solar Energy by 2022;
- (b) if so, the details thereof including the current renewable energy generation capacity;
- (c) the amount of investment required to achieve the target along with the mechanisms through which the Government will raise the required investment;
- (d) the steps taken by the Government to encourage domestic production of solar cells and to make the Indian solar cells competitive to the Chinese cells;
- (e) whether the Government also proposes to create manufacturing clusters and framing a solar manufacturing policy in order to create a suitable manufacturing ecosystem; and
- (f) if so, the details thereof and if not, the reasons therefor?

## 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.

(b) The Government has set a target of 100 GW solar power by year 2022. As on 31.12.2020, the renewable generation capacity set up in the country is around 91 GW, which includes around 37 GW  of  solar  power  generation  capacity.  This  does  not  include  large  Hydro,  which  is  also recognized as Renewable Energy.

(c)  To  achieve  the  target  of  100  GW  solar  power,  around  63  GW  of  solar  power  capacity  is required  to  be  added  to  the  present  solar  power  generation  capacity  of  around  37  GW. Considering the capital investment of Rs. 4,000 crores/ GW, the amount of additional investment required  is  around  Rs.  2.5  lakh  crores.  This  investment  is  expected  to  largely  come  from  the private sector.

Further,  Government  is  also  implementing  various  schemes  such  as  Grid-connected  Rooftop Solar  Programme  Phase-II,  PM-KUSUM,  CPSU  Scheme  Phase-II  (Government  Producer Scheme), etc. in which incentives/ financial assistance is provided by Government.

(d) to (f) The steps taken by the Government to encourage domestic production of solar cells and to make the Indian solar cells globally competitive, are as follows:

(i)  Modified  Special  Incentive  Package  Scheme  (M-SIPS)  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 31st December, 2018.

(ii)  Production  Linked  Incentive  (PLI)  Scheme  for  High  Efficiency  Solar  PV  Modules:  In order to enhance India's manufacturing capabilities and exports, on 11.11.2020, the Cabinet has given 'in-principle' approval for introduction of the 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.

(iii) Imposition of Safeguard Duty on import of solar PV cells & modules: The Government, through notification no.  01/2018-Customs (SG) dated 30th July, 2018, and notification no. 02/2020-Customs (SG) dated 29th 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.

An Expenditure Finance Committee (EFC) Memo has been circulated by Ministry of Power for  setting  up  of  manufacturing  zones  for  power  and  renewable  energy  equipment.  The sponsors of the Scheme are Ministry of Power and Ministry of New & Renewable Energy (MNRE).

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