Lok Sabha Question No. 1165 (UNSTARRED), answered on 2023-02-09
Subject: Development of Solar Capacity
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shardaben Anilbhai Patel, Mitesh Rameshbhai (Bakabhai) Patel

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 1165

ANSWERED ON 09.02.2023

## DEVELOPMENT OF SOLAR CAPACITY

## 1165. SHRIMATI SHARDABEN ANILBHAI PATEL SHRI MITESH RAMESHBHAI PATEL (BAKABHAI)

- (a) whether the Government is formulating any policy for the development of domestic solar capacity and manufacturing facility that would provide a strong support base to promote solar energy sector across the country;
- (b) if so, the details thereof;
- (c) if not, whether the Government is likely to formulate any policy in near future to reduce the country's dependency on import from other countries; and
- (d) if so, the details thereof?

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

(a)to(d)  The  Ministry  of  New  &  Renewable Energy (MNRE), Government of India, has been consistently bringing out policies for developing and facilitating domestic solar manufacturing capabilities in the country. Some of the recent initiatives, inter-alia, include:

- (i) Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: The Government of India is implementing the Production Linked Incentive (PLI) Scheme for  National Programme on High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules and solar PV cells, with an outlay of  Rs.  24,000  crore.  This  Scheme  has  provision  for  Production  Linked  Incentive  (PLI)  to  the selected solar PV module manufacturers for five years post commissioning, on manufacture and sale of High Efficiency Solar PV modules.

The Scheme is being implemented in two tranches. Tranche-I has an outlay of Rs. 4,500 crore, under which Letters of Award have been issued to three successful bidders for setting up of 8737 MW of fully integrated solar PV module manufacturing units. For Tranche-II with an outlay of Rs. 19,500 crore, the Scheme Guidelines have been issued on 30.09.2022 and tender document for selection of solar PV manufacturers has been issued on 18.11.2022.

- (ii) Domestic Content Requirement (DCR): Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Component B 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.
- (iii) Preference to 'Make in India' in Public Procurement: 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 Government/ Government entities.
- (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)  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.