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Title: Financial & Assorted Concessions: Sops for local production in new solar policy
Source:The Financial Express
Date:30 April 2018

In a move that could brighten the prospect for domestic solar equipment manufacturers, who are in the throes of fighting cheaper Chinese imports, the government is set to finalise a comprehensive solar manufacturing policy by the end of July. The policy will seek to incentivise local production of inputs (cells, ingots, wafers and polysilicons) to create a complete ecosystem for end-to-end manufacturing of solar panels. Most of these products are currently imported. The policy proposes a direct financial support of more than Rs 11,000 crore and an indirect support by way of assorted concessions. According to the sources, the Ministry of New and Renewable Energy has sought an additional budgetary approval from the Ministry of Finance to provide capital subsidy, interest subvention and funding for technology upgrade under an integrated solar manufacturing policy. The MNRE, sources said, also asked for the lowest slab of 5% GST on all components required for setting up a solar power plant. At present, India produces about 5,000 MW of modules and 1,500 MW of cells, but there is zero production of wafers, ingots and silicons that go into making of modules or solar panels. India depends entirely on imports of these products, mostly from China.

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