Mumbai: Indian corporate giants such as Reliance Industries Ltd. and Tata Power Co. are among the bidders for the government’s Rs 19,500-crore ($2.4 billion) incentive scheme for solar module makers, reported Bloomberg.
The government is selecting solar PV module manufacturers for setting up manufacturing capacities for high-efficiency solar PV modules in India under the Production Linked Incentive (PLI) scheme.
This is seen as an effort to boost domestic manufacturing and curb panel imports from dominant producer China, the report said. The bids, being conducted by state-run Solar Energy Corp., closed on February 28, after being extended multiple times.
According to people familiar with the matter, other than Reliance Industries Ltd. and Tata Power Co., US firm First Solar Inc. and Indian companies JSW Energy Ltd., Avaada Group, and ReNew Energy Global Plc, have also shown interest in the bid, reported Bloomberg. However, it added that one of India’s largest solar panel makers Adani Group was not among the bidders.
The financial Incentive scheme is a part of the government’s plan to transform the country into a manufacturing powerhouse, boosting employment and lowering imports that can deplete the country’s foreign exchange reserves, the report said.
In September 2022, the Cabinet approved a Rs 19,500-crore production-linked incentive scheme on a ‘national programme on high-efficiency solar PV modules’ with an aim to attract Rs 94,000 crore investment in the sector.
The government is offering grants to take the country’s module-making capacity to as much as 90 gigawatts, enough to meet its own requirements and serve export markets, the report added.
The bids were invited amid worries that the country’s green transition goals are being undermined by the emphasis on domestic manufacturing, which is dragging down initiatives for renewable energy, the report said.
RK Singh, the minister of power, last month said that his department is thinking of temporarily “loosening” a major restriction on module imports in order to forward projects.
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