JAIPUR: The path to independence cannot be complete if the manufacture of solar components is not on board. This seems to be the idea behind Finance Minister Nirmala Sitharaman's proposal to increase import duties on inverters.
In her household speech, she said, “We have already recognized that solar energy holds great promise for India. To build domestic capacity, we will announce a step-by-step solar cell and solar module manufacturing plan. ”
Initially, however, it proposed increasing the tariff for solar inverters from 5% to 20% and for solar lanterns from 5% to 15%. In addition to panels, inverters make up a large part of the system costs.
Sunil Bansal, Secretary General of the Rajasthan Solar Association, said, “Inverters account for about 10% of the project cost, and the country's production capacity has already increased. However, the domestic products are not competitive with the cheaper imports. That duty will make them competitive. ”
Bansal said the tariff increase will also encourage overseas manufacturers who wanted to go to India but couldn't because of cheaper imports.
“Some foreign companies that manufacture inverters have tried to set up plants in India. Now that the duty is there, they will be interested too, ”added Bansal.
In order to further stimulate the non-conventional energy sector, the Minister of Finance proposed that the Indian Solar Energy Corporation be provided with a capital injection of 1,000 billion rupees and the Indian renewable energy development agency 1,500 billion rupees.
“The infusion of Rs 2500 crore will definitely benefit the MSME sector as the capital grants that have been pending for more than two years are paid out more quickly,” said Arun Mahla, member of RSA.
In its solar policy, the government of Rajasthan has also expanded the benefits to encourage the manufacture of solar components. There are some companies that have already announced that they will invest in manufacturing if they receive a special incentive package from the state government.