Scaling up solar manufacturing in India

A new study by the CEEW Centre for Energy Finance assesses China’s advantages over India, but presents ways for the South Asian nation to build a competitive PV manufacturing sector.

Tata Power Solar's in-house module and cell manufacturing facility

Image: Tata Power Solar

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From pv magazine India

Indian PV module manufacturers could improve their competitiveness against their Chinese rivals by increasing capacity utilization and scaling up manufacturing to lower their selling prices, according to a new report by the CEEW Centre for Energy Finance (CEEW-CEF).   

The report suggests policy measures or fiscal interventions to allow immediate price leveling. However, it says that the Indian government must provide clarity on the applicability and timelines of tariff barriers, as policy uncertainty increases risk perceptions and delays much-needed investments in manufacturing. 

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The Indian Ministry of Finance has already extended safeguard duties by one year (until July 2021). But CEEW-CEF argues that the government now needs to provide clear information on the implementation timelines and tenure of the proposed basic customs duty. It recommends levying a tapered and a differential basic customs duty on solar cells and modules, with no duty on cells until March 2022. 

For the full story, please visit our pv magazine India site.

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