The Ministry of New and Renewable Energy (MNRE) has relaxed the domestic content requirement (DCR) norms on solar cells under component C of PM Kusum Yojana. Last year, MNRE waived off the domestic requirements for projects awarded on or before June 20, 2023.
In the new announcement, the Indian government has extended the norms till 31st March 2024.
“In view of the difficulties faced by the stakeholders and SIAs, it has been decided that the provision of the requirement of indigenous solar cells (DCR) under Component C (FLS) of the PM-KUSUM scheme has been relaxed till March 31, 2024,” said the official statement.
Under the component C of the scheme, the government provides financial incentives for the solarization of grid-connected agriculture pumps. 30% of the installation cost is covered by the central government, 30% by the state government and the remaining is borne by the farmer.
For agriculture feeder solarization, a Central Financial Assistance (CFA) of ₹1.05 crore per MW is in place.
But to avail this incentive, only domestically manufactured cells and modules can be used for installations under the scheme. The step was taken to boost domestic manufacturing in the sector. However, it has led to delays in the execution process.
As of July 2023, in Component C, the government approved 1, 21,930 pumps for individual pump solarization (IPS). But only 1,519 pumps are already in operation. Meanwhile, for feeder-level solarization (FLS), 22, 05,279 pumps have received approval, but none have been installed yet.
The extension of the DCR waiver aims to change this scenario.
In August, R.K. Singh, the Minister of New and Renewable Energy, reported to Parliament that the PM Kusum Scheme has already benefited 2.45 lakh farmers. Notably, states like Maharashtra, Rajasthan, Uttar Pradesh, Punjab, and Jharkhand have been the primary recipients of these benefits. With recent policy adjustments, the MNRE is also striving to expand the reach of these advantages nationwide.
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Resource: The Hindu Business Line
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