Solar equipment makers get funding support
Factory projects will be awarded based on which bidder seeks the least amount of viability gap fundingThe government will offer viability gap funding (VGF) to make solar power equipment ranging from solar cells to finished panels, Union power minister Piyush Goyal said. The scheme will support integrated factories where every component that goes into solar power generation is produced. China controls 70% of the global solar equipment market. At present, India can produce only 1.2GW of solar cells and 5.6GW of solar panels a year, and the rest is met through imports from Europe and China. Projects to set up solar equipment factories will be awarded based on which bidder seeks the least amount of VGF—a form of financial support from the government to meet the shortfall in the project cost.