MNRE: Solar cells receive DCR waiver, KUSUM subsidy persists

01 Feb 2024 CW Team

In the first clarification, it was confirmed by the ministry that the waiver of the domestic content requirement (DCR) for solar cells used for FLS under Component C of the PM-KUSUM program would remain in place until March 31, 2024. FLS is playing a pivotal role in the program, which aims to solarise 1.5 million grid-connected agriculture pumps by March 31, 2026.

India's solar cell and module imports saw a 55.1% year-on-year increase in the second quarter of the previous year after the suspension of the Approved List of Models and Manufacturers mandate. This suspension allowed developers to procure solar components from international markets until March 2024.

In the second clarification, MNRE reiterated that the central financial assistance (CFA) of Rs 10.5 million per MW for general states and Rs 17.5 million per MW for the Northeast Region, hilly states, and islands would remain in place until a further announcement.

The ministry requested the state implementing agencies to expedite the implementation of the program and report their progress.

RK Singh, Minister of Power and New & Renewable Energy, informed Parliament that, as of February 28, 2023, the PM-KUSUM program had benefited over 200,000 farmers.

A solar capacity of 89.45 MW was installed under Component A of the program, which assists farmers in setting up small solar power projects with capacities ranging from 500 kW to 2 MW. Approximately 209,000 pumps were reported as installed or solarized under Component B (solar-powered agricultural pumps) and Component C (grid-connected agricultural pumps).

The total installed solar capacity under the program stood at 1.14 GW, with Rajasthan having the highest number of beneficiaries, with 57,692 enrolled in the program.

The Ministry of New and Renewable Energy (MNRE) has issued two clarifications regarding the guidelines for the implementation of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program for feeder-level solarisation (FLS). In the first clarification, it was confirmed by the ministry that the waiver of the domestic content requirement (DCR) for solar cells used for FLS under Component C of the PM-KUSUM program would remain in place until March 31, 2024. FLS is playing a pivotal role in the program, which aims to solarise 1.5 million grid-connected agriculture pumps by March 31, 2026. India's solar cell and module imports saw a 55.1% year-on-year increase in the second quarter of the previous year after the suspension of the Approved List of Models and Manufacturers mandate. This suspension allowed developers to procure solar components from international markets until March 2024. In the second clarification, MNRE reiterated that the central financial assistance (CFA) of Rs 10.5 million per MW for general states and Rs 17.5 million per MW for the Northeast Region, hilly states, and islands would remain in place until a further announcement. The ministry requested the state implementing agencies to expedite the implementation of the program and report their progress. RK Singh, Minister of Power and New & Renewable Energy, informed Parliament that, as of February 28, 2023, the PM-KUSUM program had benefited over 200,000 farmers. A solar capacity of 89.45 MW was installed under Component A of the program, which assists farmers in setting up small solar power projects with capacities ranging from 500 kW to 2 MW. Approximately 209,000 pumps were reported as installed or solarized under Component B (solar-powered agricultural pumps) and Component C (grid-connected agricultural pumps). The total installed solar capacity under the program stood at 1.14 GW, with Rajasthan having the highest number of beneficiaries, with 57,692 enrolled in the program.