India is pushing ahead with efforts to reduce its reliance on China, the world’s largest manufacturer of solar power equipment, even as it wants to increase its renewable energy production. Prime Minister Narendra Modi’s efforts to extend his government’s made-in-India push to the renewable energy sector, where over 80% of all solar hardware is imported from the country’s northern neighbor, will be aided by a pair of measures in Tuesday’s budget.
Grants worth 195 billion rupees ($2.6 billion) have been added to encourage local equipment manufacture, while imports of solar modules and cells would be taxed 40% and 25% respectively beginning in the following fiscal year. India, the world’s third-largest emitter of greenhouse emissions, intends to more than triple its renewable energy output capacity to 450 gigawatts by 2030, with 280 gigawatts of solar power. As the country strives to achieve carbon neutrality by 2070, that number will continue to climb dramatically. “With such lofty goals in mind, one can’t continue to rely on imports and risk supply chain disruptions,” said Rupesh Sankhe, vice president of Mumbai-based Elara Capital India Pvt.
Sankhe believes that developing a local supply chain will reduce the dangers associated with border skirmishes and other conflicts with China while also assisting in the delivery of local jobs. Major local companies such as Reliance Industries Ltd. and Adani Group have already announced ambitions to expand their solar equipment manufacturing capabilities.
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Resource: Times Of India
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