Lok Sabha Question No. 1861 (UNSTARRED), answered on 2022-07-28
Subject: Manufacturing of Solar Module
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Beesetti  Venkata Satyavathi

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED QUESTION NO. 1861 ANSWERED ON 28.07.2022

## MANUFACTURING OF SOLAR MODULE

## 1861. DR. BEESETTI VENKATA SATYAVATHI

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

- (a) whether the Government has taken any steps to increase the domestic production of important components such as solar cells, modules and solar inverters used in solar module manufacturing;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government has taken any measures to bolster research and development in the field of solar module manufacturing; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

(SHRI R.K. SINGH)

- (a) & (b) Yes sir, the Government has taken a number of steps to enhance the domestic production of important components such as solar cells, modules and solar inverters, namely:
- (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 31st December, 2018. The Scheme inter-alia covered solar PV cells, solar PV modules, EVA, backsheet and solar glass.
- (ii)  Preference  to  'Make  in  India'  in  Public  Procurement  in  Renewable  Energy  Sector: Through  implementation  of  'Public  Procurement  (Preference  to  Make  in  India)  Order', procurement  and  use  of  domestically  manufactured  solar  PV  modules  and  domestically manufactured solar inverters has been mandated for Govt. / Govt. entities.
- (iii) Domestic Content Requirement (DCR): Under some of the current schemes of the Ministry of New & Renewable Energy (MNRE), namely CPSU Scheme Phase-II, PM-KUSUM and Gridconnected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.

(iv)  Imposition  of  Basic  Customs  Duty  on  import  of  solar  PV  cells  &  modules: The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and modules with effect from 01.04.2022.

(v)  Production  Linked  Incentive  (PLI)  Scheme  for  High  Efficiency  Solar  PV  Modules: MNRE is implementing the Production Linked Incentive Scheme 'National Programme on High Efficiency Solar PV Modules', with an outlay of Rs. 4,500 crore for supporting setting up of integrated  manufacturing  units  of  high  efficiency  solar  PV  modules  by  providing  Production Linked Incentive (PLI) on sales of such solar PV modules. Letters of Award have been issued to the eligible successful bidders to the extent of funds allocated (i.e. the present scheme outlay of Rs. 4,500 crore). An additional outlay of Rs. 19,500 crore was announced in the Budget 2022-23 on 1st February 2022.

(vi) To promote the Indian renewable energy manufacturing ecosystem in India, Indian Renewable Energy Development Agency (IREDA), a CPSE under MNRE, has a loan scheme for setting up manufacturing facilities.

(c) & (d) Yes sir, the Ministry of New & Renewable Energy (MNRE) is implementing a scheme 'Renewable Energy Research and Technology Development (RE-RTD) Programme' to enable indigenous technology development and manufacture for wide spread applications of new and renewable  energy.  This  scheme  covers  research  and  development  in  the  area  of  solar  module manufacturing.  Under  the  scheme,  upto  100%  financial  support  to  Government  /  non-profit research organizations and upto 50-70% to Industry, Start-ups, Private Institutes, Entrepreneurs and Manufacturing units, is provided.

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