In a bid to push the solar energy segment, more than fifteen countries will be benefitted under a production-linked incentive scheme for solar manufacturing. The government has stepped in with the decision to quadruple the PLI scheme in solar energy and the decision is assumed to have adverse effects on China.
Companies to be benefitted from solar manufacturing:
Reportedly, the PLI scheme for solar energy is likely to be widened for enhancing solar manufacturing. Under the scheme, fifteen companies including public-sector Coal India, Adani Infrastructure, Larsen and Toubro, ReNew Solar, Tata Power Solar, Waaree Energies, Vikram Solar, Megha Engineering & Infrastructures and FS India Solar Ventures will be benefitted to ensure the maximum growth of solar energy segment in India.
Considering the recommendation of the ministry of new and renewable energy (MNRE) and the ministry of electronics and information technology (MeitY) for the additional funding, the department from the promotion of industrial trade (DPIIT) stepped in with the decision to raise the allocation of the scheme to Rs 19,500 crore, from Rs 4,500 crore.
NITI Aayog CEO Amitabh Kant asserted that “Considering the fact that these (solar) proposals are already in hand and can be implemented straightaway there is a convincing reason to allocate additional amount of Rs 19,500 crore to MNRE for the implementation of the PLI on high-efficiency solar module”.
How is it beneficial?
It is a well-known fact that the industry is majorly dependent on imports as of now. But the increment in allocations will eventually provide a domestic supply source. In addition to that, the target to install 500 gigawatts (GW) of renewable energy capacity by 2030 also seems to be achieved as it is heavily dependent on solar plants.
Out of 103 GW renewable energy capacity in the country, 48 GW are solar. Whereas another 50 GW of renewable energy projects is executed, 32 GW are yet to be implemented. From the beginning of FY23, solar module and cell imports, the customs duty of 40% and 25%, respectively will be imposed.
India’s surgical strike on China:
Indian renewables industry receives 80% of the total imports from China. The percentage increases upto 95%, when other Chinese-origin companies operating out of Vietnam and Thailand are also included. Taking advantage of the situation, Chinese solar equipment manufacturers keep threatening to withdraw the supply contracts to Indian power developers.
Earlier this year, Chinese solar manufacturing companies JA Solar, Trina Solar, and Risen Energy had threatened to stop the exports to India.
Earlier as reported by TFI, Mukesh Ambani led Reliance Industries Limited (RIL) had closed in on acquiring Europe’s largest solar panel manufacturer, REC Group, for $1.2-1.5 billion from China National Chemical Corp (ChemChina), as reported by Economic Times.
However, China failed to understand that it was the actual beneficiary as India’s contribution to China’s economy was huge because of the imports. Now, the former will have to face repercussions for its actions as India will soon become “Aatmanirbhar” in the field of solar manufacturing.