ANNOUNCEMENT 04 Aug 2015

In August 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: 04 Aug 2015 | Removal date: open ended
Still in force

Public procurement localisation

 On 4 August 2015, the Indian Ministry of New and Renewable Energy released the guidelines for establishing 2000 MW of Solar PV projects under the Jawaharlal Nehru National Solar Mission (JNNSM). These targets are part of Batch III of Phase II of the program. This scheme was approved by the Cabinet Committee of Economic Affairs on 17 June 2015.

As part of the quota of Solar PV installations within this Batch, the guidelines require that out of 2000 MW, 250 MW will be reserved for bidding for projects that use domestically manufactured solar cells and modules.
In order to support the development of these projects a 'viability gap funding' has been provided where a government funding of a maximum of INR 13.1 million (ca. USD .2 million) per MW for projects using domestic raw materials and INR 10 million (ca. USD .15 million) per MW for other open projects will be provided. Apart from this, a fixed tariff has been provided for electricity purchase for a 25 year period.

Further conditions have been specified for satisfying the domestic content requirement, as below:
'In case of crystalline Silicon technology, all process steps and quality control measures involved in the manufacture of the Solar Cells and Modules from P-type (or N-type) wafers till final assembly of the Solar Cells into Modules shall be performed at the works of PV manufacturers in India. The requisite P-type (or N-type) wafers and other raw materials can be imported. In case of Thin-film technologies, the entire Modules assembly comprising of Thin -film Solar Cells shall be manufactured in India. The starting substrate (without any semiconductor junction) and other requisite raw materials can be imported'.

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 100,000 MW.

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