ANNOUNCEMENT 07 Jan 2015

In January 2015, 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: 17 Jan 2015 | Removal date: 16 Jan 2020
Still in force

Public procurement localisation

On 7 January 2015, the Ministry of New and Renewable Energy launched a scheme under the Jawaharlal Nehru National Solar Mission (JNNSM) to set up 300 MW of solar PV power projects by Defence establishments under the Ministry of Defence and Para Military Forces under the Ministry of Home Affairs. The projects in this scheme are proposed to be implemented over the 5 year period 2014 -2019 and are part of the Phase II & III of the JNNSM.

In order to support the development of these projects a 'viability gap funding' has been initiated where a government funding to a maximum of 30% of the project costs or a fixed amount ranging from INR 15 million (ca. USD .2 million) per MW to INR 25 million (ca. USD .38 million) per MW will be provided. The total support under the facility for the 300 MW scheme has been fixed at INR 7500 millions (ca. USD 115 million).

As part of the solar PV installations within this scheme, the guidelines require that all solar cells and modules for these projects will have to be domestically manufactured.

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