Reliance, Tata Power bid for ₹19,500-crore solar module incentive
1 min read . Updated: 02 Mar 2023, 02:35 PM IST
Premium- Solar module makers including Reliance Industries, Tata Power, as well as international firms like First Solar, are among bidders for ₹19,500 crore in financial incentives
Reliance Industries, Tata Power, as well as international firms like First Solar, are among bidders for ₹19,500 crore in financial incentives that India is offering to promote domestic solar module manufacturing and reduce dependence on imported panels from dominant producer China, according to a Bloomberg report.
Other interested companies include JSW Energy, Avaada Group and ReNew Energy Global, the report said.
The embattled Adani Group, one of India's largest solar panel makers, did not participate in the bidding process, the report noted.
The financial assistance is part of the Modi-led BJP government's aim to turn India into a manufacturing powerhouse, creating more jobs in the economy and reducing imports that can drain foreign exchange.
PM Modi's “Make in India" campaign is an effort to showcase the nation as an alternative to China amid a global push to diversify supply chains in the wake of the Covid-19 pandemic.
The Centre is also offering grants to take India's module-making capacity to as much as 90 gigawatts, enough to meet its own requirements and serve export markets.
Still, the bids come amid concerns that the focus on domestic manufacturing is slowing down renewable power projects, undermining India’s transition targets.
Last month, Electricity Minister Raj Kumar Singh said that his ministry is considering temporarily “relaxing" a key barrier to module imports to speed up projects.
The deadline for bids, being conducted by state-run Solar Energy Corp, was 28 February, after several extensions. More information on incentives and projects are yet to be available.
India's solar module manufacturing capacity is expected to reach approximately 95 GW by the end of 2025, according to research firm Mercom Capital.
The solar module manufacturing capacity as of September last year was 39 gigawatt (GW), the research firm said in its latest report.
In September last year, the Union Cabinet approved a ₹19,500-crore production linked incentive (PLI) scheme on 'national programme on high efficiency solar PV modules' with an aim to attract ₹94,000 crore investment in the sector.
With agency inputs