Make in India logo with a backdrop of solar panels.

India May Offer $3.1 Billion Support For Solar Equipment Manufacturing

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Originally published on CleanTechies.

Unfazed by the unfavorable decision in an international trade dispute over subsidies for solar power projects using domestically manufactured equipment, the Indian government is looking to offer financial support to domestic manufacturers.

According to media reports quoting government sources, India is looking to offer a financial support package of $3.1 billion to solar power equipment manufacturing sector. The support, possibly in the form of capital cost support, could be offered on per MW basis.

India plans to add more than 90 GW of solar power capacity between now and April 2022. There are real concerns that a very large majority of this capacity would be based on imported solar PV modules. Dependency on imported modules would mean a huge missed opportunity for developing a robust manufacturing base in the country.

Under the proposed scheme, the government plans to have a manufacturing base of 5 GW by 2019. With the capital cost support the government hopes that these products will be able to compete with cheaper modules from China and the United States.

With a sharp fall in the prices of raw materials needed to manufacture solar power modules over the last few years, and buoyed by the highly ambitious capacity addition targets, several Indian and foreign companies have either started working on manufacturing facilities or are contemplating the same.

Adani Enterprises is planning to set up perhaps the largest solar power equipment manufacturing unit in the western state of Gujarat. The first phase of the unit is expected to be operationalized by March 2017 and will have a production capacity of 1.2 GW; a second phase is expected to be operational by June 2017 increasing the production capacity to 2 GW.

Reprinted with permission.

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

CleanTechnica Holiday Wish Book

Holiday Wish Book Cover

Click to download.

Our Latest EVObsession Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.


An avid follower of latest developments in the Indian renewable energy sector.

Saurabh has 1037 posts and counting. See all posts by Saurabh