Reliance Industries, Tata Power bid for $2.4 billion solar module incentive

Mukesh Ambani-led Reliance Industries Limited and Tata Power will be fighting for a $2.4 billion financial incentive scheme to promote domestic solar module manufacturing and reduce dependence on imported panels from China. A Bloomberg report said that international firms, such as First Solar, will also be bidding for the scheme, along with JSW Energy, Avaada Group and ReNew Energy Global. 

The deadline for bids was February 28, after several extensions, the report said.

The Adani Group did not participate in the bidding process, although it is one of the largest solar panel manufacturers in India. More information on incentives and projects is yet to be available. 

In February this year, the Centre is implementing the Production Linked Incentive (PLI) Scheme for National Programme on High-Efficiency Solar PV Modules for achieving domestic manufacturing capacity of Giga Watt (GW) scale in high-efficiency solar PV modules and solar PV cells, with an outlay of Rs. 24,000 crore.

The scheme has provision for production-linked incentives to the selected solar PV module manufacturers for five years post commissioning, on the manufacture and sale of High-Efficiency Solar PV modules. 

The scheme will be rolled out in two tranches. The Tranche-I has an outlay of Rs 4,500 crore, under which Letters of Award have been issued to three successful bidders for setting up 8,737 MW of fully integrated solar PV module manufacturing units. 

For Tranche-II with an outlay of Rs. 19,500 crore, the scheme guidelines were issued on 30.09.2022 and a tender document for the selection of solar PV manufacturers has been issued on November 18, 2022.

PM Modi launched the “Make in India” campaign to showcase the country's products as an alternative to Chinese products amid a global push to diversify supply chains after the pandemic.

The Narendra Modi-led government is offering grants to push India’s module-making capacity to as much as 90 gigawatts by FY2026, which it predicts will be enough to meet domestic requirements and serve export markets.

According to the latest report, “State of Solar PV Manufacturing In India” by Mercom Capital, India’s solar module manufacturing capacity is expected to reach approximately 95 GW by the end of 2025. It said that India’s capacity for solar module manufacturing was announced at 39 GW in September 2022. It is expected that it will reach 95 GW by the end of the calendar year (CY 2025).

The report highlighted that Indian photovoltaic (PV) manufacturers are strategically poised for the growth and adoption of new technologies over the next few years. At the state level, the governments are encouraging domestic solar manufacturing by offering fiscal and non-fiscal incentives as part of their industrial, electronics and solar policies.

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