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 Urban

VECV to Manufacture Volvo Group’s Advanced AMTs in India

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, announced an investment of Rs 5.44 billion to produce and assemble Volvo Group’s 12-speed Automated Manual Transmission (AMT). The greenfield facility will be set up at Vikram Udyogpuri Integrated Industrial Township near Ujjain, Madhya Pradesh, and will cater to India and select Asia-Oceania markets.This investment marks a new milestone in the 18-year VECV-Volvo collaboration, which has already made VECV a global hub for Volvo Group’s 5 & 8 Litre (MDEP) engines since 2013, reinforcing the Make in Ind..

Next Story
Products

Action TESA Drives Shift from Plywood to Engineered Wood Solutions

Action TESA, a leading player in India’s panel industry, is spearheading the market transition from traditional plywood to engineered wood solutions such as Moist Master, HDHMR, and Boilo. These high-performance boards are redefining modular furniture, kitchen, and decorative applications with superior durability, design flexibility, and finish quality.Engineered wood offerings from Action TESA provide consistent quality, dimensional stability, and smooth surfaces, unlike plywood, which can have knots or gaps. The Moist Master, HDHMR, and Boilo BWP FR boards ensure excellent machinability, m..

Next Story
Infrastructure Urban

CREDAI-MCHI Donates Rs 30.65 Mn for Maharashtra Flood Relief

CREDAI-MCHI, the apex body of real estate developers in the Mumbai Metropolitan Region, has extended Rs 30.65 million to the Chief Minister’s Relief Fund to support rescue and rehabilitation efforts in flood-affected areas of central Maharashtra and neighbouring regions.The contribution was presented to Chief Minister Devendra Fadnavis by Sukhraj Nahar, President, and Rushi Mehta, Secretary, CREDAI-MCHI, in the presence of several leading developers from the Mumbai Metropolitan Region.A total of 44 member developers participated in this collective effort, underlining the real estate industry..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?