Steps by Government of India to Incentivize Domestic Manufacturing of RE Systems

In order to incentivize domestic manufacturing of Renewable Energy systems, the Government has taken a number of steps, including:

Solar Energy:

i. Modified Special Incentive Package Scheme (M-SIPS) Scheme of Ministry of Electronics & Information Technology.

ii. Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules

iii. Preference to ‘Make in India’ in Public Procurement in Renewable Energy Sector.

iv. Domestic Content Requirement (DCR) under schemes such as CPSU Phase-II, PM-KUSUM, Solar Rooftop Phase-II, etc.

v. Imposition of Basic Customs Duty on import of solar PV cells & modules.

Wind Energy:

vi. Government have put in place a system of Revised List of Models and Manufacturers, and only equipment manufactured by manufacturers in the list is allowed to be used for Wind Energy Projects. It also mandates that Hub and Nacelle assembly / manufacturing facility shall be in India. More than 70 percent of the wind equipment is manufactured in India.

This information was given by Shri Bhagwanth Khuba, Minister of State for New and Renewable Energy in a written reply in Rajya Sabha on 26 July, 2022.