Domestic content rules for solar power projects have already begun to provide a boost to domestic manufacturers, according to Upendra Tripathy, Secretary, Ministry for New & Renewable Energy.

“Out of the 100,000 MW target, even if we give 8,000 MW to the domestic manufacturers then it hardly affects global manufacturers, but greatly helps our local industry,” he told BusinessLine .

In Kolkata’s Special Economic Zone (SEZ), two manufacturers are working in three shifts and their inventory is full, he added.

Currently, domestic manufacturing capacity for solar photovoltaic modules is around 3,000 MW annually. With India adding 2,000 MW solar power in the current fiscal and targeting a further 12,000 MW in the 2016-17 fiscal, demand for modules is rising sharply.

Apart from Kolkata where Vikram Solar manufactures modules, Lanco Solar is based in Vishakhapatnam’s Special Economic Zone, Moser Baer in Greater Noida are amongst some of the manufacturers using SEZs as a manufacturing base for solar power equipment.

Tripathy said a model involving solar manufacturing parks can be looked at. “There can be solar manufacturing parks alongside solar power parks. Domestic manufacturing gives a great cost advantage and can help developers reduce 1/3rd of their costs which goes on logistics,” he said.

Local manufacturers said the solar power capacity addition target has provided a boost to their order books.

“Developers are looking to cut down on project commissioning times and logistic costs are increasingly going for locally manufactured components even beyond their domestic content requirements. However, while this is an opportunity, we also need to scale up capacity to cash in on this chance,” said a senior official of Indian Solar Manufacturers’ Association.

Related Topics
comment COMMENT NOW