MNRE urges states to set up renewable energy equipment parks to meet demand

The ministry has also got in touch with trade commissioners and representatives of various countries and invited them to invest in this promising sector in India

At a time when numerous international firms are looking to move their production base out of China in the wake of the coronavirus (Covid-19) outbreak, the Ministry of New and Renewable Energy (MNRE) is seeing a fresh opportunity in setting up renewable energy (RE) equipment manufacturing parks to meet domestic demand as well as make India a global production hub.

As there are concerns of a slump in the supply of raw materials and goods from China owing to the Covid-19 crisis, which began from there, the situation in fact presents an opportunity for India to boost its manufacturing capacity and emerge as a hub for production.

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. The MNRE has offered many incentives to states to set up such parks. 

"MNRE has initiated action in big way towards setting up new hubs for manufacturing renewable energy equipments in the country to meet both domestic and also cater to global demand," the ministry said in a statement.

Tuticorin Port Trust, and the governments of Madhya Pradesh and Odisha have already expressed interest in setting up RE equipment manufacturing parks, it added. Secretary, MNRE, Anand Kumar held meetings with RE companies last week.

The ministry has also got in touch with trade commissioners / representatives of various countries inviting them to invest in this promising sector in India. The MNRE Secretary addressed the US India Strategic Partnership Forum earlier this week through a webinar and sought collaboration and investment by US firms.

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 85per cent of its requirement.

The government has already levied basic customs duty on these goods for protecting the domestic solar manufacturing industry. 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 ministry has strengthened the clauses in Power Purchase Agreements (PPAs) to boost investor confidence.

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. The IREDA has also brought out a new scheme for project specific funding to promote new RE projects in India, it added.