india

Updated: Apr 18, 2020 19:04 IST

The Centre has asked state governments and port authorities to identify land for creating new hubs for manufacturing renewable energy equipment as part of India’s efforts to attract firms shifting base from China amid the Covid-19 pandemic.

The Centre has written to the state governments and port authorities that the land identified by them should measure 50 to 500 acres and will be used for manufacturing hubs that will meet both domestic demand and seek global investments.

The new and renewable energy ministry said on Saturday that at “a time when many companies are planning to shift their manufacturing base from China, it is [the] opportune time for India to bring policy changes for facilitating and catalysing manufacturing in India”.

Tuticorin Port Trust and Madhya Pradesh and Odisha states have expressed keen interest in setting up renewable energy manufacturing parks. The Centre also plans to use Indian Railways’ vacant land to set up solar power plants of 30 gigawatt (GW) capacity. The railways plan to set up plants to generate 10GW in the first phase of the initiative.

According to officials aware of the development, the renewable energy secretary chaired a meeting with manufacturing companies last week, and the ministry has been in touch with trade commissioners and representatives of several countries to invite them to invest in India.

The Indian government also addressed the US-India Strategic Partnership Forum earlier this week and sought collaboration and investment by American firms, the ministry said.

“These hubs will manufacture equipment like silicon ingots and wafers, solar cells and modules, wind equipment and ancillary items like back sheet, glass, steel frames, inverters and batteries,” said one of the officials cited above.

India currently has the capacity to manufacture wind equipment of around 10GW, and it imports nearly 85% of solar cells and modules from abroad. “To incentivise domestic manufacturing, Government of India [has] already announced provisions to enable levying of Basic Customs Duty on import of solar cells and modules,” the ministry said.

The ministry has also set up a renewable energy facilitation and promotion board to facilitate investments.

“The Ministry has also strengthened the clauses in Power Purchase Agreements (PPAs) to boost investor confidence. The three power and RE sector NBFCs, namely Power Finance Corporation, Rural Electrification Corporation Limitedand Indian Renewable Energy Development Agency have reduced their repayment charges to 2% for enhancing the fund availability for new projects in the sector. IREDA has brought out a new scheme for project specific funding to promote RE manufacturing in India,” the ministry said.

India’s renewable energy sector has been tasked to meet its 175GW target by 2022.