Question : Manufacturing of Solar Modules

(a) the details of the domestic manufactures of solar modules in the country;
(b) whether domestic module manufacturing growth has gone down during the last three years, if so, the details thereof and the reasons therefor;
(c) the details of solar modules manufactured during the said period;
(d) the details of solar modules imported and the amount spent on it by the Government during the said period;
(e) whether there is any mismatch between demand and supply in the field of solar module manufacturing; and
(f) if so, the steps being taken by the Government to cope up with such mismatch?

THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

(SHRI R.K. SINGH)

(a) The Ministry of New and Renewable Energy (MNRE) issues an approved list of solar PV module manufacturers. The details of domestic solar PV module manufacturing facilities as per the latest list published on 10.03.2021, are at Annexure.

(b) to (e)At present, domestic solar PV module manufacturing alone is not sufficient to meet the full demand of the country for solar PV modules and this necessitates imports of solar PV modules.

Solar PV module manufacturers are not required to report their production to Ministry of New & Renewable Energy (MNRE), and therefore, this data is not available with MNRE. However, there are no indications that the domestic module manufacturing has gone down during the last three years. As can be seen from the Tables A & B below, during this period, the yearly addition of solar generation capacity in the country has remained the same or has increased, while the value of imports of solar cells, whether or not assembled into modules or made up into panels, has declined sharply.

Table-A:
Details of solar cells, whether or not assembled into modules or made up into panels, imported during last three years, as per the website pertaining to Export-Import Data Bank of Department of Commerce
Item HS code 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

Table – B:
Year Capacity addition in solar power generation in the country (GW)

2018-19 6.54
2019-20 6.45
2020-21 7.63

(f) In order to incentivize domestic manufacturing of solar PV cells and modules, the Government has taken the 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 Production Linked Incentive Scheme ‘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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