Lok Sabha Question No. 1320 (UNSTARRED), answered on 2023-07-27
Subject: Execution of Solar and Wind Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Anumula Revanth Reddy

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 1320

ANSWERED ON 27.07.2023

## EXECUTION OF SOLAR AND WIND PROJECTS

## 1320. SHRI ANUMULA REVANTH REDDY

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

- (a) the specific details of the Government's plans and timeline to develop domestic manufacturing capacities for critical solar value chain raw materials to reduce dependency on foreign imports;
- (b)  whether  the  Government  has  done  an  assessment  of  the  current  EPC  (Engineering, Procurement and Construction) capabilities to execute solar and wind projects at a scale of 50s to 100s of GW per year in the country and if so, the details thereof;
- (c) the steps being taken to enhance and scale up this capacity;
- (d)  whether  the  Government  proposes  to  make  financing  more  accessible  and  affordable  for renewable energy projects, particularly for small and medium sized enterprises and rural areas; and
- (e) if so, the details thereof?

## ANSWER

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

- (a) To develop domestic manufacturing capacities for critical solar value chain raw materials and to reduce dependency on foreign imports, the Government has taken several steps, which interalia include:
- (i)  Production  Linked  Incentive  Scheme: The  Government  of  India  is  implementing  the Production Linked Incentive (PLI) Scheme under National Programme on High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency  Solar  PV  modules,  with  an  outlay  of  Rs.  24,000  crore.  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  for  setting  up  of  8,737  MW  of  fully  integrated  solar  PV  module manufacturing units. For Tranche-II with an outlay of Rs. 19,500 crore, Letters of Award have been  issued  for  setting  up  of  39,600  MW  of  fully/  partially  integrated  solar  PV  module manufacturing units.
- (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 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. (b) No, Sir. No such assessment has been carried out by Ministry of New & Renewable Energy (MNRE). (c) on 31.03.2023, MNRE has announced Bidding Trajectory for Renewable Power capacity of 50 GW per annum, with at least 10 GW per annum of Wind Energy capacity, each year from FY 2023-24 to 2027-28. The creation of such large demand for Renewable Power is a catalyst for enhancement of the EPC (Engineering, Procurement and Construction) capabilities for execution of solar and wind projects. (d) & (e) The steps taken by Government to make financing more accessible and affordable for renewable energy projects, including for small and medium sized enterprises and rural areas, interalia include the following: (i) Non-Banking Financial Companies (NBFCs) in Power Sector i.e. Indian Renewable Energy Development  Agency  Limited  (IREDA),  Power  Finance  Corporation  Limited  (PFC),  REC Limited (REC) are financing renewable energy projects. Reserve Bank of India has included bank loans up to a limit of ₹30 crore  to borrowers for hydel  plants  and  for  renewable  energy  based  public  utilities,  viz.,  street  lighting  systems  and remote  village  electrification  etc.  under  Priority  Sector  Lending  classification.  For  individual

(ii) purposes like solar based power generators, biomass-based power generators, wind mills, microhouseholds, the loan limit is ₹10 lakh per borrower.

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