MP to Set Up Manufacturing Zones

Highlights:

  • MPIDC wins the tender to create manufacturing zones for renewable energy equipment in Madhya Pradesh.
  • The tender was floated jointly by the Ministry of Power and MNRE
  • A sum of One thousand crores has been allocated for the project.

Madhya Pradesh Industrial Development Corporation (MPIDC), has been selected by the MRNE for setting up manufacturing zones for power and renewable energy equipment.

The zone will include Common Infrastructure Facilities (CIF) and Common Testing Facilities (CTF). Further, the manufacturing zones will have the infrastructure to produce solar components such as modules, inverters, ingots, backsheets, mounting structures, and wind components such as blades, hubs, and shafts.

Moreover, the facilities will also manufacture components for other renewable energy projects such as biomass, green hydrogen, and small hydro.

In April 2022, the Ministry of Power and the Ministry of New and Renewable Energy (MNRE) invited proposals for setting up manufacturing zones from state governments and special purpose vehicles (SPVs). Eight states, which include Andhra Pradesh, Bihar, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Telangana submitted the proposals.

The Project Management Agency (PMA) accorded MPIDC’s proposal the highest marks out of the eight.

As per the statement released by the Ministry of Power, the selection aimed to establish a manufacturing facility of ‘cutting-edge, clean, and energy efficient technology to reduce import dependence and promote the Make in India movement.

MNRE and the Ministry of Power jointly constituted a Scheme Steering Committee (SSC), which will appraise, approve and monitor the progress of the manufacturing Zone as per the Scheme guidelines.

On 2nd November 2022, the SSC granted an ‘in-principal’ approval to MPIDC. Moreover, the government of MP has been requested to create a Special Purpose Vehicle for the project.

The MoP and MNRE are looking to establish three manufacturing zones. Two of these will be Brownstone manufacturing zones (where existing production infrastructure is utilized for new production activity), and one greenfield zone (where production infrastructure is built from the ground up).

As per the scheme, the government will allocate a sum of One thousand Crores (₹10 Billion) for the project. The duration of the scheme is 5 years – from FY 2022-23- FY 2026-27.

The funding will get released in the following manner:

MP to Set Up Manufacturing zones

Source: Ministry of Power

Madhya Pradesh has been taking major steps to boost its green energy generation capacity. The state is also going to have the world’s largest floating solar power plant of 600MW capacity. Moreover, the state’s renewable energy minister, Hardeep Singh Dang, recently stated that MP’s green energy generation had increased by almost 32 times in the last 12 years.

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Resource: Mercom India

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