India wants solar manufacturers to bid for $2.4 billion in assistance

To encourage indigenous production of solar power equipment, India is offering $2.4 billion in government help.

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To encourage indigenous production of solar power equipment, India is offering $2.4 billion in government help.

According to documents posted on the agency’s website, the state-run Solar Energy Corp. of India is looking for bids from solar producers for cash incentives totaling 195 billion rupees. The national module production capacity might increase to 90 gigawatts, which would be sufficient to meet domestic needs and supply international markets.

Based on the bid documents, Reliance Industries Ltd. and Adani Group, two industrial behemoths controlled by billionaires Mukesh Ambani and Gautam Adani, were winners in a previous round of solar manufacturing incentives and are qualified to submit a new application for the construction of additional capacity.

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The financial support is a component of Prime Minister Narendra Modi’s strategy to transform the country into a manufacturing powerhouse, generating jobs and lowering imports. In addition, India is better positioned to compete with China in the wake of the pandemic due to the emphasis on domestic production.

As per BloombergNEF data, Chinese companies operate more than 441 gigawatts of module capacity globally, compared to around 15 gigawatts operated by Indian enterprises.

According to Seci, companies that commit to establishing fully integrated production facilities, from polysilicon to modules, would be given preference. Potential investors will attend a pre-bid meeting with the agency on December 6, and bids must be submitted online by January 9.

The most recent grants come after a 45 billion rupee offering for the creation of modules. Shirdi Sai Electricals received assistance in that round, along with Reliance and Adani.