ANNOUNCEMENT 25 Oct 2013

In October 2013, 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: 25 Oct 2013 | Removal date: 25 Oct 2014
Still in force

Public procurement localisation

 On 25 October 2013, the Indian Ministry of New and Renewable Energy released the guidelines for establishing 750 MW of Solar PV projects under the Jawaharlal Nehru National Solar Mission (JNNSM). These targets are part of Batch I of Phase II of the program and the guidelines thereto are valid for a year.
 
In order to support the development of these projects a 'viability gap funding' has been initiated in Phase 2 where a government funding to a maximum of 30% of the project costs or INR 25 million (ca. USD .4 million) per MW will be provided. Apart from this, a fixed tariff has been provided for electricity purchase for a 25 year period.
 
As part of the quota of Solar PV installations within this Batch, the guidelines require that half of the capacity i.e. 375 MW will be reserved for bidding for projects that use domestically manufactured solar cells and modules.
 
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.

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