02:11 GMT +330 April 2017
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    Workers clean photovoltaic panels inside a solar power plant in Gujarat, India (File)

    India’s Solar Power Dream Turns Silver Lining For Chinese Industry

    © REUTERS/ Amit Dave
    Asia & Pacific
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    The Indian government’s decision to double imports of solar cells and modules from China over the last two years has turned out to be a lifeline for the Chinese solar industry, which was hit by low prices in the international market.

    New Delhi (Sputnik) — Imports from China were doubled when the Narendra Modi government tacitly admitted that domestic industry didn’t have the manufacturing capacity to transform India’s power sector.

    “We are dependent on imports and China is our biggest supplier of solar cells and modules; and in some cases, the prices are much lower than what is being offered by domestic manufacturers,” said Nirmala Sitharaman, Minister for Commerce and Industry.

    Between April-December 2016, India imported solar cells worth $1615 million from China, compared to $603 million in the whole of 2014-15. Apart from photovoltaic cells, the Indian government ordered $42 million worth other photocells.

    India’s growing appetite for solar power has proved to be a savior for Chinese firms, such as Trina Solar and Hanwha Q Cells, as the global spot price for solar panels fell to record levels across the world due to low demand.

    On the other hand, as on March 10, 2017, the installed solar power capacity in India crossed 10,000 MW, four times the installed capacity 3 years back.

    “In the next 15 months, the installed solar power capacity would cross 20,000 MW. India could not have completely focused on Make in India in the last 3 years as being in the nascent stage; its solar power sector needed technological and financial boost from abroad to rapidly expand horizons. Now, the sector has reached certain maturity level that will lead the country into becoming self-reliant in meeting its Green Energy needs,” Power Minister Piyush Goyal said.

    India is a big marketplace for manufacturing in solar power sector and international investors and manufacturers have started setting up manufacturing units in the country, Goyal noted.

    Despite several measures to boost domestic manufacture of solar cells, like capital  subsidy,  tax  holiday  for  10  years,  generation —based incentive, viability gap funding,  concessional  excise  and  custom  duties, and FDI up to 100 per cent under the automatic route, substantial improvement is yet to come by in solar manufacturing. The Indian government aims to generate 100 gigawatts from large solar installations to meet its renewable energy capacity target of 175 GW by 2022.

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    Tags:
    capacity, import, manufacturer, solar power, Narendra Modi, China, India
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