India is eyeing renewable energy equipment manufacturers looking to shift base from China following the Covid-19 outbreak.
“At a time when many companies are planning to shift their manufacturing base from China, it is an opportune time for India to bring policy changes to facilitate and catalyse manufacturing in India,” a statement from the Ministry of New and Renewable Energy (MNRE) said.
MNRE has set up the renewable energy Industry Facilitation and Promotion Board to facilitate investment in the sector, the statement said.
“The three power and renewable energy sector non-banking financial companies, namely, Power Finance Corporation Ltd, REC and Indian Renewable Energy Development Agency (IREDA), have reduced their repayment charges to 2 per cent to enhance funds availability for new projects. Moreover, IREDA has brought out a scheme for project specific funding to promote renewable energy manufacturing in India,” the statement said.
MNRE has also written to state governments and port authorities to identify land parcels of 50-500 acres to set up renewable energy manufacturing parks.
Tuticorin Port Trust, Madhya Pradesh and Odisha have expressed their interest in setting up these parks, the statement said.
“These hubs will manufacture equipment such as silicon ingots and wafers, solar cells and modules, wind equipment and ancillary items like back sheet, glass, steel frames, inverters, batteries, among others,” the statement said.
Currently India has around 10 GW of wind equipment manufacturing capacity. It imports about 85 per cent of its solar cells and modules requirement. To incentivise domestic manufacturing, the Centre has announced provisions to enable levy of basic customs duty on import of solar cells and modules.