Lok Sabha Question No. 2890 (UNSTARRED), answered on 2021-08-05
Subject: Solar Energy Panels
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Ramcharan Bohra

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-2890

ANSWERED ON-05/08/2021

## SOLAR ENERGY PANELS

## +2890. SHRI RAMCHARAN BOHRA

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

- a) whether the solar energy panels/equipments used in solar energy generation are being imported and if so, the details thereof;
- b) the number of solar energy panels imported along with the amount spent for the said purpose during each of the last three years and the current year;
- c) the details of solar energy panels/equipments producing countries;
- d) whether the Government proposes to produce solar energy panels/equipments in the country;
- e) if so, the details thereof; and
- f) the incentives being given to manufacturers by the Government for the said purpose?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

## (SHRI R.K. SINGH)

(a)&(b) As per the website pertaining to Export-Import Data Bank of Department of Commerce, the value  of solar cells, whether or not assembled into modules or made up into panels, imported during last three years is as follows:

| Item                                                                      | HS code             | Value of import in million USD   | Value of import in million USD   | Value of import in million USD   |
|---------------------------------------------------------------------------|---------------------|----------------------------------|----------------------------------|----------------------------------|
|                                                                           |                     | 2018- 19                         | 2019- 20                         | 2020- 21                         |
| solar cells, whether or not assembled into modules or made up into panels | 85414011 & 85414012 | 2160                             | 1684                             | 572                              |

(c) Solar Photo Voltaic (PV) panels / modules are being manufactured in several countries in the world. The list of countries which have supplied solar PV modules to India in FY 2020-21 is at Annexure . (Source: Export-Import Data Bank of Department of Commerce)

- (d) to (f) Solar PV cells and modules are already being manufactured in the country. In order to further  enhance  domestic  manufacturing  of  solar  PV  cells  and  modules,  the  Government  has taken following steps:
- (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.
- (ii)  Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: In order to enhance India's manufacturing capabilities and exports, on 28.04.2021, Ministry of New & Renewable Energy (MNRE) has issued the Scheme Guidelines for 'National Programme on High  Efficiency  Solar  PV  Modules',  with  an  outlay  of  Rs.  4,500  crores.  The  Scheme  has provisions 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.
- (iii)  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  09.02.2021 , has  inter-alia,  prescribed  that  in  public  procurement  of  items  in  respect  of which there is sufficient local capacity and local competition, 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%.  Solar  PV modules are one of the products identified as having sufficient local capacity and competition.
- (iv)  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 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.
- (v)   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.
- (vi) Discontinuation of Customs Duty Concession benefits: Ministry of Finance (Department of Revenue) vide its Gazette Notification No. 7/2021-Customs dated 01.02.2021, has rescinded its earlier Notification No. 1/2011-Customs dated 06.01.2011 thereby withdrawing the benefit of concessional customs duty on the items imported for initial setting up of the solar power projects with effect from 02.02.2021.

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## Solar PV cells/ modules (HS Codes - 85414011 & 85414012) imported during FY 2020-21

| S.No.   | Country         |   Values in US$ Million |
|---------|-----------------|-------------------------|
| 1.      | CAMBODIA        |                    6.69 |
| 2.      | CANADA          |                    0.8  |
| 3.      | CHAD            |                    0.24 |
| 4.      | TAIWAN          |                   11.28 |
| 5.      | CHINA P RP      |                  494.87 |
| 6.      | FRANCE          |                    0.06 |
| 7.      | GERMANY         |                    0.03 |
| 8.      | HONG KONG       |                    3.22 |
| 9.      | INDONESIA       |                    0.01 |
| 10.     | ITALY           |                    0.16 |
| 11.     | JAPAN           |                    0.15 |
| 12.     | KOREA RP        |                    0.16 |
| 13.     | MALAYSIA        |                    7.46 |
| 14.     | MYANMAR         |                    5.78 |
| 15.     | RUSSIA          |                    0.04 |
| 16.     | SAUDI ARAB      |                    0.01 |
| 17.     | SINGAPORE       |                    6.69 |
| 18.     | SPAIN           |                    0.1  |
| 19.     | SWITZERLAND     |                    0.01 |
| 20.     | THAILAND        |                   18.76 |
| 21.     | U K             |                    0.06 |
| 22.     | U S A           |                    0.03 |
| 23.     | VIETNAM SOC REP |                   14.97 |
| 24.     | UNSPECIFIED     |                    0.07 |
|         | Total           |                  571.65 |

Source: Export-Import Data Bank of Department of Commerce