The Centre has received requests from companies for setting up 20 gigaatts (GW) of domestic solar module and cell manufacturing capacity.
Speaking at the India PV Edge 2020 virtual symposium, Minister of State (Independent Charge) for Power and New and Renewable Energy RK Singh said: “Expression of intent for setting up 20 GW of module and cell manufacturing have been received by the Centre.”
According to Singh, this is on the back of various steps taken by the government to support the domestic manufacturing industry, “These have come after India decided to have a safeguard duty, customs duty and the Approved List of Models and Manufacturers (ALMM) to prevent dumping and protect the domestic solar manufacturing industry.”
Singh said the ALMM is expected to be approved and finalised for new tenders from this month itself.
Commenting on how there may be more support for innovation in the solar energy sector, Singh said there would be additional incentive for using advanced technology. These can be offered through interest subventions.
According to a presentation by the Ministry of New and Renewable Energy, India presently has 16 GW of annual solar module manufacturing capacity. Of this, only 9-10 GW is operational. The total installed solar cell manufacturing capacity stands at 2.5 GW per year.
This is much lesser than the 25 GW annual demand that is expected to accrue for solar modules in the country in the coming years.