Building ecosystem for indigenous solar mfg
POWER & RENEWABLE ENERGY

Building ecosystem for indigenous solar mfg

Targeted initiatives and policies for scaling up the domestic solar manufacturing aligned to the RE target of 450 GW by 2030 can help in building a robust ecosystem for indigenous solar manufacturing. Saibaba Vutukuri, CEO, Vikram Solar, identifies a roadmap for achieving it.

Loan subventions. There is a need for a comprehensive policy framework that encompasses tariff and non-tariff barriers, long term financial support and direct incentives to make the domestic solar industry cost-competitive. The finance ministry should consider 5% interest subvention on term loan and working capital, upfront central financial assistance of 30% on capex, increase export incentive from 2% to 8% under Remission of Duties or Taxes on Export Product (RoDTEP) which will aid indigenous solar manufacturing.

 Basic Custom Duty. Further, the industry awaits the implementation of Basic Custom Duty (BCD) with exemption to Special Economic Zone (SEZ) based solar manufacturers and the Production Linked Incentive (PLI) scheme. In our view, bringing down Minimum Alternate Tax (MAT) for units operating in SEZs, extending Section 10 AA of Income Tax Act till 31 March 2022 for SEZ based solar manufacturing unit, preferred interest rate support and priority lending support for manufacturing units, availability of National Clean Energy Fund (NCEF) for expanding solar research and development are critical to augment domestic solar manufacturing.

Tariff barriers. Additionally, the government to consider implementing tariff barriers like BCD/Safeguard Duty/ADD for at least four to five years. Offering capital subsidy of 50% for setting up research and development and quality testing infrastructure within the manufacturing units will help build scale. Also, super-deductions of 200% of the research and development (R&D) expenditure for new and clean solar technology development should be allowed. India already offers super-deduction of 200% of the R&D expenditure in emerging areas such as biotechnology which has led to rapid growth of Indian biotech and pharma companies.

Considering the importance of the electric vehicle (EV) battery ecosystem in a solar-smart nation, special funds to be allocated for this development. Such a move will not only encourage economic recovery amidst the pandemic, but will also provide an enabling ecosystem to make India the global manufacturing hub for solar. 

Author: Saibaba Vutukuri is CEO of Vikram Solar.

Targeted initiatives and policies for scaling up the domestic solar manufacturing aligned to the RE target of 450 GW by 2030 can help in building a robust ecosystem for indigenous solar manufacturing. Saibaba Vutukuri, CEO, Vikram Solar, identifies a roadmap for achieving it.Loan subventions. There is a need for a comprehensive policy framework that encompasses tariff and non-tariff barriers, long term financial support and direct incentives to make the domestic solar industry cost-competitive. The finance ministry should consider 5% interest subvention on term loan and working capital, upfront central financial assistance of 30% on capex, increase export incentive from 2% to 8% under Remission of Duties or Taxes on Export Product (RoDTEP) which will aid indigenous solar manufacturing. Basic Custom Duty. Further, the industry awaits the implementation of Basic Custom Duty (BCD) with exemption to Special Economic Zone (SEZ) based solar manufacturers and the Production Linked Incentive (PLI) scheme. In our view, bringing down Minimum Alternate Tax (MAT) for units operating in SEZs, extending Section 10 AA of Income Tax Act till 31 March 2022 for SEZ based solar manufacturing unit, preferred interest rate support and priority lending support for manufacturing units, availability of National Clean Energy Fund (NCEF) for expanding solar research and development are critical to augment domestic solar manufacturing. Tariff barriers. Additionally, the government to consider implementing tariff barriers like BCD/Safeguard Duty/ADD for at least four to five years. Offering capital subsidy of 50% for setting up research and development and quality testing infrastructure within the manufacturing units will help build scale. Also, super-deductions of 200% of the research and development (R&D) expenditure for new and clean solar technology development should be allowed. India already offers super-deduction of 200% of the R&D expenditure in emerging areas such as biotechnology which has led to rapid growth of Indian biotech and pharma companies.Considering the importance of the electric vehicle (EV) battery ecosystem in a solar-smart nation, special funds to be allocated for this development. Such a move will not only encourage economic recovery amidst the pandemic, but will also provide an enabling ecosystem to make India the global manufacturing hub for solar.  Author: Saibaba Vutukuri is CEO of Vikram Solar.

Next Story
Infrastructure Transport

NHAI Set to Launch Green Bonds Valued at Rs 10 billion

Reiterating its commitment to promote environment sustainability and development of green highways, National Highways Authority of India’s fully owned Special Purpose Vehicle (SPV) ‘DME Development (DMEDL) will issue green bonds to raise funds for the implementation of environment friendly measures on Delhi-Mumbai Expressway project. To be held under closed bidding system, the aggregate total size of the issue will be up to Rs10 billion with a base issue size of Rs 5 billion. There will be a green-shoe option to retain oversubscription up to Rs 5 billion. The first of its kind green bond i..

Next Story
Infrastructure Transport

Govt may Offer 35% Subsidy for Goods Transport via Inland Waterways

To enhance the transportation of goods through rivers, which currently constitutes only 2 per cent of India’s total freight movement, the government is planning to introduce a three-year subsidy scheme for cargo owners opting for inland waterways. Under the proposed initiative, a 35 per cent subsidy for transportation on national waterways 1, 2, and 16 is expected to shift around 800 million tonne-kilometres (tkm) of cargo to inland waterways, as per the Ministry of Ports, Shipping, and Waterways. (Tkm measures cargo transportation by multiplying the metric tonnes of goods by the distance ..

Next Story
Infrastructure Urban

NDMC to Install 139 Eco-Friendly Rainwater Harvesting Pits in Delhi

To conserve rainwater, the New Delhi Municipal Council (NDMC) has finalized a plan to construct 139 modular water harvesting pits, with work expected to begin soon. According to NDMC Vice-Chairman Kuljeet Chahal, 95 of these pits will be built by the road division, while the remaining 44 will be handled by the building department. He explained that the tendering process for the project has already been completed, and construction can commence shortly. Chahal highlighted that these pits are environmentally friendly, cost-effective, require minimal maintenance, and can be constructed quickly. ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000