Capacity of 35,000 MW solar power production for solar equipment on cards

If bids come into force, the first large-scale plan will be made to establish the manufacturing of ingot and wafers in the country.

New Delhi (Natural Energy News): The government on Thursday has garnered interest to set up a manufacturing capacity of around 35,000 MW of solar equipment, Union Energy and Renewable Energy Minister RK Singh.

Related Article: Mumbai Municipal Corporation all it's tender for 100 MW floating solar-hydropower hybrid project

If bids come into force, the first large-scale plan will be made to establish the manufacturing of ingot and wafers in the country. According to industry estimates, India currently has a manufacturing capacity of 3,000 MW for cells and 10,000 MW for modules.

Mr RK Singh said that they have the interest to establish manufacturing of solar modules having a capacity of 20,000 MW, and solar cells having a capacity of 15,000 MW and a proportional quantity of ingots, wafers, etc,".

He also said that negotiations were going on with the Finance Ministry to implement basic customs duty on foreign solar imports. "I have recalled the Finance Minister that we are staying for the policies to show up. They (domestic industries) are waiting for all the customs," the minister said.

Related Article: NTPC decreases solar tender capacity for EPC of 500 MW, restricting the project location in Gujarat

Domestic manufacturers are anticipating a charge on solar equipment since FM Nirmala Sitharaman included it in its Union Budget proposal earlier this year. RK Singh told reporters in June that such basics were to be imposed on customs duty from 1 August to prevent dumping of Chinese goods and protect the national interest, where 80% of solar equipment suffers.

However, due to disagreements over the "grandfathered" clause that would exempt already signed power purchase agreements, implementation was delayed.

Adding the "grandfathered clause" to existing power purchase agreements would mean an understanding between solar developers and the government that the project cost more than the budget allocated at the time of the agreement's conclusion, and therefore, compensation would be provided through distribution companies Developers.

Related Article: Investment in renewables should triple to $ 800 annually by 2050 to reach climate target: report

Singh said that instead, a formula based on coal cess will be implemented to recover the damage caused by security and basic customs duties. While this is expected to bring relief to generators, consumers may have to bear the brunt of such a policy immediately.