Local content to shine in solar photo-voltaic projects

The Ministries of New and Renewable Energy (MNRE) and Power plan to make it mandatory for solar power developers to source crystalline silicon-based modules from domestic manufacturers.
However, they can import solar cells for manufacturing these modules for the photovoltaic (PV) projects.
This provision will be in the soon-to-be notified guidelines by the Ministries for implementation of the solar power projects under the Jawaharlal Nehru National Solar Mission (JNNSM).
An official source said, “This is to ensure that the domestic industry gets a boost. The decision has been taken after consultations with all the stakeholders. The intent is to encourage both new technology and the domestic manufacturing sector.” It is desirable that more units are set up in the country to allow competition in the first phase of the Mission (from November 2009-March 2013), the official said. In Phase I, the target is to set up 1,300 MW of solar power, out of which 1,100 MW will be grid-connected and 200 MW off-grid. Industry players such as Tata BP Solar and Moser Baer, that are manufacturers of cells as well as modules, have been expressing concern on allowing import of solar cells.
The players argue that there is enough cell capacity in India at present to cater to the requirement under Phase-I of the Mission.
Tata BP, Moser Baer, Indo Solar, XL Telecom & Energy and Solar Semiconductor have been traditionally manufacturing and exporting solar cells and modules to Europe, Japan and the US. The players are slated to have a total capacity of 750 MW by the year end.
Stating that all cell and modules produced in India are available for sale in India in line with the WTO agreement, the industry officials said, “Domestic manufacturers have no export obligation forcing them to sell abroad. If they have been selling abroad so far, it is because of the non-existence of a proper grid-connected solar market in India. Mandatory domestic content should not be limited only to Phase-I but for the entire JNNSM projects covering Phase II and Phase III as well. This will ensure that the Indian PV manufacturing capacity expands in line with the rising targets of the Mission.”
The Government will notify the guidelines for the next phases after the guidelines for the first phase are announced.