Lok Sabha Question No. 4616 (UNSTARRED), answered on 2022-03-31
Subject: Import of Solar Panels
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Subhash Ramrao Bhamre, Sunil Dattatray Tatkare, Amol Ramsing Kolhe, Supriya Sadanand Sule, DNV Senthilkumar. S.

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 4616

ANSWERED ON 31.03.2022

## IMPORT OF SOLAR PANELS

4616. DR. SUBHASH RAMRAO BHAMRE SHRI SUNIL DATTATRAY TATKARE DR. AMOL RAMSING KOLHE SHRIMATI SUPRIYA SULE DR. DNV SENTHILKUMAR. S.

Will the Minister of New & Renewable Energy be pleased to state:

- (a) the quantity of solar panels imported during the last three years and the current year along with the countries from where these solar panels are being imported;
- (b) the reasons for not manufacturing solar panels/ equipments indigenously;
- (c) whether lack of modern technology and infrastructure in the country has hampered the growth of manufacturing of solar panels and equipments;
- (d) if so, the corrective steps taken along with the agreements signed with other countries for sharing latest modern technology in this field;
- (e) whether the Government proposes to review the policy for manufacturing of solar energy panels/equipments and if so, the details and the objectives thereof;
- (f) whether the Government also proposes to make the said panels/equipments cheaper so as to facilitate increased use of it; and
- (g) if so, the details thereof along with the steps taken to increase the production of solar energy equipments under Make in India initiative to promote solar energy in the country?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER (SHRI R.K. SINGH)

- (a) The details of solar photovoltaic modules and cells imported during last three years and the current year, as per the website pertaining to Export-Import Data Bank of Department of Commerce, are at Annexure-I.
- (b)  Solar  panels  are  manufactured indigenously  as well. The  total capacity  for manufacturing solar panels in the country, as per the Approved List of Models and Manufacturers (ALMM) is about 11.5 GW.
- (c) & (d) During the last three years, the annual addition of solar power generation capacity in the country has been as follows:

| Year    |   Capacity addition in solar power generation in the country (GW) |
|---------|-------------------------------------------------------------------|
| 2018-19 |                                                              6.54 |
| 2019-20 |                                                              6.45 |
| 2020-21 |                                                              7.63 |

The total capacity for manufacturing solar panels in the country, as per the Approved List of Models and Manufacturers (ALMM) is about 11.5 GW. Thus, the capacity of domestic solar PV manufacturing capacity  is  more  than  the  annual  installed  solar  power  generation  capacity.  Modernisation  of manufacturing  technology  is  a  continuous  process  and  the  solar  PV  manufacturers  upgrade  their technology as per the market demand for higher efficiency modules. In order to incentivize domestic manufacturing  of  high  efficiency  solar  PV  modules,  MNRE  issued  the  Scheme  Guidelines  for Production Linked Incentive Scheme 'National Programme on High Efficiency Solar PV Modules', with an outlay of Rs. 4,500 crores for supporting manufacturing 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).

- (e) An additional outlay of Rs 19,500 crore in respect of Production Linked Incentive Scheme for High Efficiency  Solar  PV  Modules  has  been  announced  in  the  Budget  2022-23  on  1st  February  2022. Measures regarding allocation of additional capacities in respect of additional outlay of Rs. 19,500 crore, have been initiated.
- (f)&(g) In order to incentivize domestic manufacturing of solar PV panels and equipment and make domestic solar manufacturers globally competitive, the Government has taken various steps which inter alia include:
- (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 covers 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  MNRE, namely CPSU Scheme Phase-II, PM-KUSUM and Grid-connected Rooftop Solar Programme PhaseII, 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 announced imposition of 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: Please see the response to parts (c), (d) & (e) of the question.
- (vi). Discontinuation of Customs Duty Concessions: MNRE has discontinued issuance of Customs Duty Concession Certificates for import of material /equipment for initial setting up of solar PV power projects with effect from 02.02.2021.

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| SOLAR CELLS WHETHER OR NOT ASSEMBLED IN MODULES/ PANELS, IMPORTED IN INDIA UNDER CTH 85414011 / CTH 85414012   | SOLAR CELLS WHETHER OR NOT ASSEMBLED IN MODULES/ PANELS, IMPORTED IN INDIA UNDER CTH 85414011 / CTH 85414012   | SOLAR CELLS WHETHER OR NOT ASSEMBLED IN MODULES/ PANELS, IMPORTED IN INDIA UNDER CTH 85414011 / CTH 85414012   | SOLAR CELLS WHETHER OR NOT ASSEMBLED IN MODULES/ PANELS, IMPORTED IN INDIA UNDER CTH 85414011 / CTH 85414012   | SOLAR CELLS WHETHER OR NOT ASSEMBLED IN MODULES/ PANELS, IMPORTED IN INDIA UNDER CTH 85414011 / CTH 85414012   |
|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                                                                                | 2018-19                                                                                                        | 2019-20                                                                                                        | 2020-21                                                                                                        | 2021-22 (Apr-Jan)                                                                                              |
| Anguilla                                                                                                       | 0.14                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| Australia                                                                                                      | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.23                                                                                                           |
| Cambodia                                                                                                       | 0.43                                                                                                           | 5.97                                                                                                           | 6.69                                                                                                           | 1.72                                                                                                           |
| Canada                                                                                                         | 24.04                                                                                                          | 7.92                                                                                                           | 0.80                                                                                                           | 1.32                                                                                                           |
| Chad                                                                                                           | 0.00                                                                                                           | 0 .00                                                                                                          | 0.24                                                                                                           | 0.00                                                                                                           |
| Chile                                                                                                          | 0.00                                                                                                           | 0 .00                                                                                                          | 0.00                                                                                                           | 0.63                                                                                                           |
| Taiwan                                                                                                         | 65.58                                                                                                          | 20.97                                                                                                          | 11.28                                                                                                          | 5.61                                                                                                           |
| China PRP                                                                                                      | 1694.04                                                                                                        | 1307.03                                                                                                        | 494.87                                                                                                         | 3117.78                                                                                                        |
| France                                                                                                         | 0.01                                                                                                           | 0 .00                                                                                                          | 0.06                                                                                                           | 0.00                                                                                                           |
| Germany                                                                                                        | 20.10                                                                                                          | 3.73                                                                                                           | 0.03                                                                                                           | 0.02                                                                                                           |
| Hong Kong                                                                                                      | 45.37                                                                                                          | 31.3                                                                                                           | 3.22                                                                                                           | 221.6                                                                                                          |
| Indonesia                                                                                                      | 0.00                                                                                                           | 0.11                                                                                                           | 0.01                                                                                                           | 0.78                                                                                                           |
| Italy                                                                                                          | 0.15                                                                                                           | 0.27                                                                                                           | 0.16                                                                                                           | 0.00                                                                                                           |
| Japan                                                                                                          | 0.40                                                                                                           | 3.41                                                                                                           | 0.15                                                                                                           | 0.00                                                                                                           |
| Korea RP                                                                                                       | 10.72                                                                                                          | 1.72                                                                                                           | 0.16                                                                                                           | 0.13                                                                                                           |
| Lithuania                                                                                                      | 0.09                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| Luxembourg                                                                                                     | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.01                                                                                                           |
| Malaysia                                                                                                       | 15.31                                                                                                          | 3.91                                                                                                           | 7.46                                                                                                           | 50.17                                                                                                          |
| Myanmar                                                                                                        | 0.00                                                                                                           | 0.98                                                                                                           | 5.78                                                                                                           | 2.17                                                                                                           |
| Netherland                                                                                                     | 0.04                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| Philippines                                                                                                    | 0.01                                                                                                           | 0.04                                                                                                           | 0.00                                                                                                           | 0.34                                                                                                           |
| Qatar                                                                                                          | 0.01                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| Russia                                                                                                         | 0.00                                                                                                           | 0.02                                                                                                           | 0.04                                                                                                           | 0.00                                                                                                           |
| Saudi Arab                                                                                                     | 0.00                                                                                                           | 0.00                                                                                                           | 0.01                                                                                                           | 0.00                                                                                                           |
| Singapore                                                                                                      | 126.3                                                                                                          | 31.32                                                                                                          | 6.69                                                                                                           | 20.57                                                                                                          |
| Spain                                                                                                          | 0.00                                                                                                           | 0.18                                                                                                           | 0.10                                                                                                           | 0.14                                                                                                           |
| Sri Lanka DSR                                                                                                  | 0.25                                                                                                           | 1.28                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| St. Helena                                                                                                     | 0.06                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| Swaziland                                                                                                      | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.08                                                                                                           |
| Switzerland                                                                                                    | 0.03                                                                                                           | 0.00                                                                                                           | 0.01                                                                                                           | 1.29                                                                                                           |
| Thailand                                                                                                       | 55.05                                                                                                          | 120.47                                                                                                         | 18.76                                                                                                          | 16.26                                                                                                          |
| Tunisia                                                                                                        | 0.00                                                                                                           | 0.01                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| Turkey                                                                                                         | 0.01                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| U.A.E.                                                                                                         | 0.86                                                                                                           | 0.43                                                                                                           | 0.00                                                                                                           | 0.00                                                                                                           |
| U.K.                                                                                                           | 0.56                                                                                                           | 0.02                                                                                                           | 0.06                                                                                                           | 0.00                                                                                                           |
| U.S.A.                                                                                                         | 8.20                                                                                                           | 2.57                                                                                                           | 0.03                                                                                                           | 0.08                                                                                                           |
| Vietnam Soc Rep                                                                                                | 91.97                                                                                                          | 140.63                                                                                                         | 14.97                                                                                                          | 5.71                                                                                                           |
| Unspecified                                                                                                    | 0.00                                                                                                           | 0.00                                                                                                           | 0.07                                                                                                           | 0.00                                                                                                           |
| TOTAL (USD million)                                                                                            | 2160                                                                                                           | 1684                                                                                                           | 572                                                                                                            | 3447                                                                                                           |