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MNRE to hold consultations with industry on solar mission

According to reports, faced with the US’ complaint to the WTO, the government will hold consultations with domestic solar energy producers next week on their ability to supply equipment for the ambitious national solar mission.

India had made provisions in the Jawaharlal Nehru National Solar Mission to source certain equipment for setting up solar energy plants from domestic producers with an aim to give a boost to the industry which was being overtaken by Chinese, Minister for New and Renewable Energy Farooq Abdullah said.

Speaking at the India Energy Congress here, Abdullah said there were two groups within the country–one favouring local content and another which has “very strongly” opposed it.

“We are getting both sides face to face to decide which side is really right,” he said urging those favouring local content to present their case strongly at the consultations to be held on February 15.

“Local content is going to go if you do not defend your position very strongly,” Abdullah said.

The US Trade Representative (USTR) has alleged that India’s solar mission appears to discriminate against US solar equipment by requiring solar energy producers to use locally manufactured cells and by offering subsidies to those developers who use domestic equipment.

It is also alleged that forced localisation requirements restrict US exports to India markets.

“Whatever we do, we have done the right thing. We will defend ourselves at whatever forum. Our commitments are to the international treaties we are signatories to and to national interest,” said Ratan P Watal, Secretary, Ministry of New and Renewable Energy.

One comment

  1. Let the Government provide low cost funds with interest subsidy (with low cost kfw funds (received at 1.5%/year!!, Climate change fund etc), so that EXIM bank gets vanished and forex fluctuation risk can also be mitigated. Limit the PPA price to Rs. 4/kwh, go for decentralised generation with 25 to 75 MW in each taluka (where irradiation is technically feasible) with mini grids (later to be connected to main grid when govt finds money)…. Interest subsidy to be paid only against generation proof (refer my article published in Energy Blitz and can be accessed from link provided in http://www.kknesar.com)

    Ask the taxation skew, SEZ non SEZ stupidity to end. Let there be uniform price by all Panel suppliers through out INDIA (with additional transportation costs with uniform tax in whatever state or SEZ or territory) and boost sales and also match CHINESE price (let indian manufacturers be innovative, otherwise, why project developer has to support Indian vendor for their in efficient plants with high working capital and sitting on losses eg Moser baer etc who have enjoyed the IPO benefits etc)…..

    Let each state develop solar PV projects and do not restrict the bidding, instead, ask the developers to show the equity money, land clearance and MINI GRID proposal with a possibility to hook to main grid with consumers, and then go for it with a PPA of rs. 4/kwh with interest subsidy with clear rule and play by rule and avoid PUNTERS (i.e proprietary companies bidding and selling their equity in the name of reverse bidding or project allotment, hence, reduce this kind of easy money rather reduce the project costs…. refer my first article to know why India is spending unnecessarily ONE FULL EQUITY due to flaws in project award mechanism…

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