Govt seeks EoI for setting up a manufacturing zone on pilot basis for power & renewable energy sector
Premium- The move to set up dedicated manufacturing zones is aimed at reducing imports of Chinese equipment and attracting private investments
The ministry of power has invited an Expression of Interest (EoI) for setting up a manufacturing zone on pilot basis for the power and renewable energy sector. This comes after the Union Budget announced a scheme under the Atmanirbhar Bharat package for setting up three manufacturing zones for critical power and renewable energy equipment.
The move to set up dedicated manufacturing zones is aimed at reducing imports of Chinese equipment and attracting private investments across power generation, distribution, and transmission in green and conventional energy spaces as power is a strategically important sector.
“The Ministry had earlier issued orders conveying implementation of a Scheme for Setting up a Manufacturing Zone for Power and Renewable sector on a pilot basis with a budgetary outlay of Rs.400 crore over a period of five years," the Ministry of Power said in a statement.
The official statement further said that the central sector scheme and the duration of the scheme are five years from FY 2022-23 to FY 2026-27. “The last date for submission of Expression of Interest is 8th June 2022," the Ministry added.
Mint had reported on the plans to set up these zones, one each in a coastal state, a hill state and a land-locked state, by offering incentives such as land and electricity at attractive prices. The government has drawn up a list of equipment that it wants to be manufactured in these zones.
India imported $2.16 billion worth of solar photovoltaic (PV) cells, panels, and modules in 2018-19. Of the ₹71,000 crore spent on conventional power equipment imports, Chinese products accounted for nearly one-third or around ₹20,000 crore. The Centre is looking at enabling the manufacturing of all power sector equipment in India in the next three years.
The announcement comes amid massive troop build-up along the Line of Actual Control in eastern Ladakh since 15 June 2020 clashes between the two sides that left 20 Indian soldiers and an unspecified number of Chinese soldiers dead.
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