How the performance-linked incentives and basic customs duty has helped the Indian module manufacturers?
Indian companies have shown a positive response to the government’s policy announcements on solar manufacturing. The policy of Production Linked Incentive (PLI) and Basic Customs Duty (BCD) has given a boost to solar manufacturing in India. This has led to many companies bidding for the PLI scheme, with 19 companies bidding for a total of over 58 GW. However, the initial sanctioned amount of INR 4500 crore (USD 600 million) was not enough to support all of them. As a result, the government increased the PLI amount to INR 24000 crore (USD 3200 billion), and 15 companies were listed for the PLI.
These companies include existing solar manufacturers who want to extend their manufacturing capacity, those who want to go for backward integration from modules to cells, power plant developers who want to start manufacturing, and new entrants into the field. Some of the prominent companies on the list include Reliance Industries Limited, Coal India, Tata Power Solar Systems Ltd., Waaree Energies Ltd., and Vikram Solar Ltd.
Reliance Industries Limited is a highly diversified company with a presence in many sectors such as energy, natural gas, petrochemicals, telecommunication, retail, and textiles. Its announcement to invest at least USD 10 billion in renewables indicates its intention to transform its business for the future and change the energy landscape in India and globally. Similarly, Coal India, the world’s largest coal miner, is also interested in entering the solar manufacturing sector.
The PLI and BCD policies have encouraged companies to start manufacturing solar modules locally to stay competitive. This has led to traditional companies realizing the importance of green, sustainable energy and deciding to invest in solar manufacturing. The list of eligible companies for the PLI provides an idea of the number and type of companies interested in solar manufacturing. However, the list is likely to change as bids will be called afresh for the additional INR 19500 crore (USD 2600 million).
In conclusion, the government’s policy announcements on solar manufacturing have given a boost to the sector in India. The PLI and BCD policies have encouraged companies to start manufacturing solar modules locally and stay competitive. This has led to a significant increase in the number of companies interested in solar manufacturing. The future of solar manufacturing in India looks promising, and it will be interesting to see how the industry evolves in the coming years.