The Ministry of New and Renewable Energy (MNRE), has offered many incentives to states to set up renewable energy (RE) equipment manufacturing parks as numerous international firms are looking to move their production base out of China after the COVID-19 outbreak.
This will not only help in meeting the huge backlog of domestic demand but will place India as a global production hub. With this objective, the ministry has written to various state governments and port authorities to identify land parcels of 50-500 acres for setting up such parks.
These facilities will manufacture equipment like silicon ingots and wafers, solar cells and modules, wind power equipment and ancillary items like back sheet, glass, steel frames, inverters and batteries. The hubs will also export equipment and services in the RE sector.
At present, India has around 10 GW of wind equipment manufacturing capacity. In case of solar cells and modules, India imports about 85 per cent of its requirement.
The MNRE said at a time when many companies are shifting their base from China, it is time for India to bring policy changes for facilitating manufacturing in the country. In tune with this, the MNRE has set up a Renewable Energy Industry Facilitation and Promotion Board to facilitate investment in the sector.
The three power and RE sector NBFCs — PFC, REC and IREDA — have reduced their repayment charges to 2 per cent for enhancing the funds available for new projects.
Reference- PIB, Economic Times, Business Standards