Indian Solar Imports from China to increase
The Solar Cell manufacturing capacity of India is 2.5 GW. Around 5 GW of power is under construction. Also, the Power Ministry has recently approved for 3GW. This means that the solar equipment imports from China, which is already contributing 80% of solar equipment import is to increase.
On July 3, 2020, the Union Minister of Power and Renewable Energy said that domestic manufacturing capacity of solar cells meets only half of India’s demands. This means that the dependence on China is to continue.
Role of Adani Power
The private firm Adani Power recently commissioned 2GW of solar power. This was the biggest solar power project in the world at a cost of Rs 45,000 crores. After winning the bid, the firm is to develop 8 GW of solar power by 2025.
This will certainly make India self-reliant. However, the issue is the solar equipment being imported.
What is the issue?
The Photovoltaic cells imported from China in the last 5 years amount to 4.83 billion USD. India does not hold solar PV manufacturing for its energy and capital intensive nature. The scenario prevails despite of the fact that GoI offers to support with 20-25% subsidy under the Modified Special Incentive Package Scheme.
Month: Current Affairs - July, 2020