Friday, June 14, 2013: The government has announced that 75 per cent of the 750 MW solar projects that will be offered under the second phase of the Jawaharlal Nehru National Solar Mission, will be developed with local content.
The first phase of the JNNSM had its face off with the much argued domestic content requirement (DCR). On the second phase, the government is sticking to its policies and has planned for a 75 per cent local requirement in the total of 750 MW projects. This certainly has put an end to the future possibilities of DCR as was opposed by US manufacturers.
Farooq Abdullah, the minister of New and Renewable Energy Department said that the government wants to encourage domestic players to contribute to the solar projects. The bidding for the project is expected to start in July.
Previously, some US manufacturers had even dragged the Indian government to the WTO stating that the DCR policies are affecting their profits.
The Ministry of New and Renewable Energy is also stated to have made a proposal in the cabinet to reinstate the acceleration depreciation benefits for wind power generation. According to Abdullah, the depreciation benefits are for two years and there are chances that the cabinet will allow thumbs up. He also added that the Generation Based Incentive Scheme would be continued now for a longer duration. The prior scrapping of the same benefits had hit hard the local small and medium sector enterprises, who are also the majority of the investors in wind energy.
Solar Direct, a French firm is all set to setup its first 5-MW unit in Rajasthan. Gaurav Sood, the MD of Indian Solar Direct unit says that he hopes for the bids to be competitive a win the project among a total of 20 MW. The company had previously bagged an Rs7.49/KWh project last December in the first phase of JNNSM.
Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine
