India Mulls $1 Billion Subsidy Plan to China-Proof Solar Sector.
India is finalizing a $1 billion capital subsidy plan to bolster its solar manufacturing industry, according to people with knowledge of the matter, as part of a wider effort to reduce dependence on China and profit from the global energy transition.
The proposal is being made by the Ministry of New and Renewable Energy and will target domestic makers of wafers and ingots, one of the weakest segments of the country’s solar industry, according to the people, who asked not to be identified as the discussions are private.
The plan has the backing of the top advisers in Prime Minister Narendra Modi’s office and is expected to be presented to the cabinet for approval in the next few months, they said.
A spokesperson for the Ministry of New and Renewable Energy said Tuesday the government is still discussing with stakeholders how to incentivize domestic manufacturers of ingots, wafers and polysilicon, but there is no formally approved proposal yet.
India is heavily reliant on China for imports of solar equipment, a risk to the nation’s energy security. While India has grown its domestic modules and cell making segments, wafers and ingots manufacturing still stands at just 2 gigawatts of capacity, built by Adani Enterprises Ltd. India has just over 71 gigawatts of modules and nearly 11 gigawatts of cells capacity.
Source: FINANCE.YAHOO
