Domestic Manufacturing Capacity in Renewable Energy Sector

Ministry of New & Renewable Energy (MNRE), Government of India, consistently brings out policies to enhance domestic manufacturing capacity in renewable energy sector.

Various initiatives taken to enhance domestic manufacturing capacity in renewable energy sector include:

Production Linked Incentive Scheme

The Government of India is implementing the Production Linked Incentive (PLI) Scheme under National Programme on High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore.

The Scheme is being implemented in two tranches. Tranche-I has an outlay of Rs. 4,500 crore, under which Letters of Award have been issued for setting up of 8,737 MW of fully integrated solar PV module manufacturing units.

For Tranche-II with an outlay of Rs. 19,500 crore, Letters of Award have been issued for setting up of 39,600 MW of fully/ partially integrated solar PV module manufacturing units.

Domestic Content Requirement (DCR)

Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Component B 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.

Preference to ‘Make in India’ in Public Procurement

Through implementation of ‘Public Procurement (Preference to Make in India) Order’, procurement and use of domestically manufactured solar PV modules and solar inverters have been mandated for Government/ Government entities.

Imposition of Basic Customs Duty on import of solar PV cells & modules

The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and modules, with effect from 1 April, 2022.

Discontinuation of Customs Duty Concessions

MNRE has discontinued issuance of Customs Duty Concession Certificates for import of material /equipment for initial setting up of solar PV power projects with effect from 02 February, 2021.

Domestic Manufacturing in Wind Sector

MNRE has also put in place a procedure to enlist type and quality certified wind turbines under ‘Revised List of Models & Manufacturers’ (RLMM). It also mandates that Hub and Nacelle assembly / manufacturing facility shall be in India.

As on 30 June, 2023, 33 different models of wind turbines are being manufactured in India by 14 different companies. Around 70-80% indigenization has been achieved with strong domestic manufacturing in the wind sector. The current annual production capacity of wind turbines in the country is around 15,000 MW.

Renewable Energy Research and Technology Development Programme (RE-RTD)

MNRE supports a scheme "Renewable Energy Research and Technology Development Programme (RE-RTD)" through various research institutions and industry to enable indigenous technology development and manufacture for wide spread applications of new and renewable energy in efficient and cost effective manner across the country with the ultimate aim of increasing share of renewables in the energy mix in the country.