Lok Sabha Question No. 601 (UNSTARRED), answered on 2021-02-04
Subject: Solar Power Equipment Manufacturing
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Lavu Sri Krishna Devarayalu

## 601. SHRI LAVU

## SHRI SRI KRISHNA DEVARAYALU

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

- (a) the details of solar power equipment manufacturing capacity in India, component and Statewise;
- (b) whether the Government has placed import duties on solar power equipment and if so, the details thereof;
- (c) the details of the investments made in solar power equipment manufacturing by private and public sector enterprises during the last three years and the current year;
- (d) the details of the Government's investment promotion schemes for solar power equipment manufacturing and expenditure incurred for the same;
- (e) whether Indian solar power equipment is more expensive than foreign made solar power equipment; and
- (f) if so, the details thereof along with the Government's initiative to make domestic production more cost efficient?

## ANSWER

THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY, POWER and MoS for  SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI R.K. SINGH)

- (a) The details of present operational solar PV manufacturing capacities in India are as follows:

Solar PV cell manufacturing: around 2.5 GW/ annum Solar PV module manufacturing: around 9-10 GW/annum These manufacturing capacities are spread across a number of States.

- (b) The Government, through notification no.  01/2018-Customs (SG) dated 30 th July, 2018, and notification no. 02/2020-Customs (SG) dated 29 th July,  2020,  has  imposed Safeguard Duty on import of solar cells whether or not assembled in modules or panels.
- (c)  Considering  the  capital  investment  as  around  Rs.  200  crore/GW  for  solar  PV  module manufacturing  and  the  capital  investment  as  around  Rs.  650  crore/GW  for  solar  PV  cell manufacturing,  the  cumulative  investment  made  by  solar  PV  manufacturers  is  more  than  Rs. 3,500 crores. Figures of year-wise investment made in solar PV manufacturing are not available.
- (d)  The  details  on  Government's  investment  promotion  schemes  for  solar  power  equipment manufacturing 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 31 st December, 2018.

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-601

ANSWERED ON-04.02.2021

## SOLAR POWER EQUIPMENT MANUFACTURING

(ii) Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: In order to  enhance  India's  manufacturing  capabilities  and  exports,  the  Government  has  approved  the introduction  of  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. The implementation of the scheme has not yet started.

(e) & (f) The Directorate General of Trade Remedies (DGTR) in its findings dated 18.07.2020 in matter of review investigation for continued imposition of Safeguard Duty on imports of 'Solar Cells  whether  or  not  assembled  in  modules  or  panels'  into  India,  has  stated  that 'without safeguard duty, import prices are below the selling price of the Domestic Industry and would undercut the prices of the Domestic Industry if removed'.

The  initiatives  taken  by  the  Government  to  make  domestic  solar  PV  production  more  cost efficient 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 31 st 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 Government has approved the introduction of 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) 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 23.09.2020,  has  inter-alia,  prescribed  that  in  public  procurement  of  solar  PV  modules  and inverters,  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%.

(iv)  Imposition  of  Safeguard  Duty  on  import  of  solar  PV  cells  &  modules:  The  Government, through  notification  no.    01/2018-Customs  (SG)  dated  30 th July,  2018,  and  notification  no. 02/2020-Customs (SG) dated 29 th July,  2020,  has  imposed Safeguard Duty on import of solar cells whether or not assembled in modules or panels.

(v)    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, as per extant Guidelines.

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