Steps by Indian Gov. to enhance manufacturing of Solar module


The Government has taken a number of steps to enhance the domestic production of important components such as solar cells, modules and solar inverters, namely:

  1. Modified Special Incentive Package Scheme (M-SIPS) of Ministry of Electronics & Information Technology: The scheme mainly provides a 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. The Scheme inter-alia covered solar PV cells, solar PV modules, EVA, back sheet and solar glass.
  1. Preference to ‘Make in India’ in Public Procurement in Renewable Energy Sector: Through the implementation of the ‘Public Procurement (Preference to Make in India) Order’, procurement and use of domestically manufactured solar PV modules and domestically manufactured solar inverters have been mandated for Govt./Govt. entities.
  1. 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.
  1. Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has imposed Basic Customs Duty (BCD) on the import of solar PV cells and modules with effect from 01.04.2022.
  1. Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules: MNRE is implementing the Production Linked Incentive Scheme ‘National Programme on High-Efficiency Solar PV Modules’, with an outlay of Rs. 4,500 crores for supporting the 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. Letters of Award have been issued to the eligible successful bidders to the extent of funds allocated (i.e. the present scheme outlay of Rs. 4,500 crores). An additional outlay of Rs. 19,500 crores was announced in Budget 2022-23 on 1st February 2022.
  1. To promote the Indian renewable energy manufacturing ecosystem in India, Indian Renewable Energy Development Agency (IREDA), a CPSE under MNRE, has a loan scheme for setting up manufacturing facilities.

The Ministry of New & Renewable Energy (MNRE) is implementing a scheme “Renewable Energy Research and Technology Development (RE-RTD) Programme” to enable indigenous technology development and manufacture for widespread applications of new and renewable energy. This scheme covers research and development in the area of solar module manufacturing. Under the scheme, up to 100% financial support to Government / non-profit research organizations and up to 50-70% to Industry, startups, Private Institutes, Entrepreneurs and Manufacturing units, is provided.