Lok Sabha Question No. 2236 (UNSTARRED), answered on 2016-03-10
Subject: Crystalline Silicon PV Cells
Ministry: NEW AND RENEWABLE ENERGY
Asked by: PRATHAP SIMHA

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED  QUESTION NO. 2236

TO BE ANSWERED ON 10.03.2016

## CRYSTALLINE SILICON PV CELLS

## 2236.  SHRI PRATHAP SIMHA:

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

- (a) whether  to  manufacture  85  GW  of  crystalline  Silicon  (c-Si)  PV  cells,  an  estimated production of 450000 tonnes of polysilicon will be required in the next seven years with the current global production of about 300000 tonnes per year, if so, the details thereof;
- (b) whether  to  achieve  India's  solar  energy  aspirations,  a  huge  demand  is  foreseen  for crystalline Silicon (c-Si) PV panels and consequently for polysilicon in the next few years, if so, the details thereof;
- (c) whether the Government proposes to provide incentives to polysilicon manufacturers by giving special incentives in the Modified Special Incentive Package Scheme (M-SIPS) for the benefit of solar energy sector, if so, the details thereof; and
- (d) the other steps being taken by the Government in this regard?

## ANSWER

THE  MINISTER  OF  STATE  FOR  POWER,  COAL  &  NEW  AND  RENEWABLE ENERGY (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

- (a): Yes, Madam. Depending upon technology to be used for manufacturing of crystalline silicon, about 4,25,000 tones of polysilicon is estimated to be required to produce 85 GW of crystalline silicon PV cells in approx. 6 years.  The present global manufacturing capacity of polysilicon is estimated to be around 3,76,000 tones per annum.
- (b): The  Government  has  set  a  target  of  100  GW  solar  power  by  2022.  The  year-wise targets are given below:

*3,743 MW commissioned upto 2014-15.

| Year/Category   | Rooftop Solar(MW)   | Large Scale Solar Power (MW)   | Total (MW)   |
|-----------------|---------------------|--------------------------------|--------------|
| 2015-16         | 200                 | 1,800                          | 2,000        |
| 2016-17         | 4,800               | 7,200                          | 12,000       |
| 2017-18         | 5,000               | 10,000                         | 15,000       |
| 2018-19         | 6,000               | 10,000                         | 16,000       |
| 2019-20         | 7,000               | 10,000                         | 17,000       |
| 2020-21         | 8,000               | 9,500                          | 17,500       |
| 2021-22         | 9,000               | 8,500                          | 17,500       |
| Total           | 40,000              | 57,000                         | 97,000*      |

The above targets will create demand for solar photo voltaic panels which could be poly/mono silicon, thin film or based on any other cost effective technology.

(c): The financial support is already available for manufacturing of polysilicon under the Modified  Special  Incentive  Package  Scheme  (M-SIPS)  of  Department  of  Electronics  & Information Technology (DeitY), Government of India.  The details are given in Annexure.

(d): The Government is providing a range of fiscal and promotional incentives as given below for promotion of solar energy under various schemes:-

- capital and/or interest subsidy,
- tax holiday on the earnings for 10 years,
- generation based incentive,
- accelerated depreciation,
- viability gap funding (VGF),
- financing solar rooftop systems as part of home loan,
- concessional excise and custom duties,
- preferential tariff for power generation from renewables
- Renewables are covered under priority lending.

In addition, Foreign Direct Investment up to 100 per cent under the automatic route is also permitted.

********

## Annexure referred to in reply to part (c) of Lok Sabha unstarred Question No. 2236 to

## be answered on 10.3.2016

## Revised Financial Incentives under Modified Special Incentive Scheme of DeitY

| S.No.                              | Type                      | Financial Incentives                                                         | Financial Incentives                                                                                                            |
|------------------------------------|---------------------------|------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
|                                    |                           | Special Economic Zone (SEZ)                                                  | Non-SEZ                                                                                                                         |
| 2.5 for Solar Photovoltaics (SPV): | (i) Polysilicon           | 20% of Capex + 10% of Production Subsidy on Production turnover (Ex-factory) | 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of Production Subsidy on Production turnover (Ex-factory) |
|                                    | (ii) Ingots and/or wafers | 20% of Capex + 10% of Production Subsidy on Production turnover (Ex-factory) | 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of Production Subsidy on Production turnover (Ex-factory) |
|                                    | (iii) Cells               | 20% of Capex + 10% of Production Subsidy on Production turnover (Ex-factory) | 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of Production Subsidy on Production turnover (Ex-factory) |
|                                    | (iv) Modules/Panels       | 20% of Capex                                                                 | 25% of Capex + Reimbursement of Excise/CVD on capital equipment                                                                 |

Source: Extracts from Notification No. 27(35)/2013-IPHW dtd. 3 rd August, 2015 from Deptt. of Electronics and Information Technology)