Make in India and clean energy are among the top priorities for the Indian government, as it has also set aside Rs 19,500 crore to support local solar cell manufacturers. At the G20 meet last year, PM Modi also announced India's ambition to generate 50 per cent energy from renewables by 2030. But a plan to lift restrictions on the import of solar modules, could further hamper the expansion plans of India's local manufacturers.
Not up to the mark?
Since the homegrown solar module makers aren't able to keep up with high demand, the government is reportedly considering relaxations for imports. This will make bringing in solar modules from China and other producers easier, after restricting the inflow for the past two years. Not only will such a change slow down capacity expansion by domestic players, but it will also hit their trust in policy support from the state.
Need to accelerate
India's current solar power generation capacity stands at 64 gigawatts and it plans to scale that up to 280 gigawatts by 2030. For this 27 gigawatts needs to be added annually, and through a free trade agreement ASEAN nations can supply modules for 15 gigawatts every year.
Apart from the planned policy changes, India will also be blacklisting the companies which have delayed the completion of renewable energy projects, including solar power plants.
