ANNOUNCEMENT 24 Aug 2011

In August 2011, the government of India announced a change in the local input requirements for the participation in certain public purchases.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 24 Aug 2011 | Removal date: 23 Aug 2012
Still in force

Public procurement localisation

 On 24 August 2011, the Indian Ministry of New and Renewable Energy released the guidelines for establishing 350 MW of Solar PV projects under the Jawaharlal Nehru National Solar Mission (JNNSM). These targets are part of Batch II of Phase I of the program and the guidelines thereto are valid for the year 2011-12.
 
In order to support the development of these projects a 'bundling' mechanism has been initiated in Phase 1, whereby expensive solar power will be bundled with an equivalent MW of cheaper coal based power (by the Ministry of Power) to be sold to the distribution utilities. This mechanism allows paying higher prices to solar power providers.

As part of the quota of Solar PV installations within this Batch, the guidelines require that all projects, except those using thin film modules or concentrator PV cells, have to source cells and modules domestically.

The JNNSM is a major Indian programme to develop local solar energy and domestic production capacity. The latter is sought to be achieved by setting domestic content requirements. The Mission aims to install 20,000 MW of solar projects divided in three phases in the period 2010-2022. As of 17 June 2015, the target capacity installation has been increased to 100,000 MW.

AFFECTED SECTORS