The Indian government has selected bids from companies looking to set up solar module manufacturing facilities. This is the second round of such bids.
The Solar Energy Corporation of India called for bids few months back, offering subsidies to companies looking to set up module manufacturing facilities. Following the bidding process, the government allocated 39.6 gigawatts of manufacturing capacity to 11 companies.
These companies will be eligible for Rs 140 billion in subsidies over a period of five years after they start production.
Bidders were required to submit bids for manufacturing capacity across different vertical integrations — polysilicon to modules, wafers to modules and cells to modules.
Successful bidders under the polysilicon to modules integration include Indosol, Reliance Industries and First Solar aggregating to a total capacity of 15,400 megawatts. These companies are required to start production by April 2026.
A total of 16,800 megawatts capacity was awarded under the waters to modules integration. Successful bidders include Waaree Energies (an existing modules manufacturer) and new comers Avaada, ReNew, JSW, and Grew. The companies must start production before April 2025 to be eligible for full subsidy.
Under the cells to modules basket, three companies were collectively awarded 7,400 megawatts of capacity. They include incumbents Vikram Solar and Tata Power Solar and new entrant AMP Energy. The deadline for these companies to start production has been set as October 2024.
The government estimates a total investment of Rs 930 billion by successful bidders in the second phase of bidding.
During the first phase of bidding in December 2022, subsidies for a total manufacturing capacity of 8,737 megawatts was awarded. Successful companies included Reliance Industries and Adani Enterprises.
Subsidies for module manufacturing are part of Indian government’s production linked incentive scheme aimed at making India self reliant in terms of module production. India, like most other countries, has been heavily dependent on Chinese module imports for more than a decade. Following supply chain issues during COVID pandemic and increased tensions related to border dispute between the two countries, the Indian government decided to launch a subsidy scheme for solar module manufacturing sector.
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