Strong prospects to ‘Make in India’
India’s renewable energy sector, having so far focused almost solely on adding more generation capacity with ever lower tariffs, is undergoing a drastic change, as policy pivots toward domestic manufacturing. Vinay Rustagi, managing director of Bridge to India, looks at how the border conflict with China and endless supply side disruptions in the wake of Covid-19 have together strengthened the Indian government’s resolve to support the establishment of a more localized supply chain.
The “Make in India” policy has three main planks. First, there is a new tariff barrier on all PV cell and module imports in the form of a basic customs duty (BCD) of 25% and 40% respectively from April 2022 onwards. Second, the government is offering a production-linked incentive (PLI) worth INR 240 billion ($3 …
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