“We are elated with CCEA’s inclination towards boosting domestic module and cell manufacturing in the country, by allocating 12 GW of PV projects exclusively to domestic players.
The move is expected to have a dampening short term and a positive long term impact on the industry. While on the face of it, the proposal is set to provide relief to solar domestic manufacturers for the next four years, even with immediate implementation, the on-ground reality indicates a gestation period of at least a year, till this proposal actually yields operational benefits. The move fails to provide the much needed immediate support to the sector, due to which, mid scale players may not be able to sustain the pressures for the next year.
On the up side, this proposal is bound to attract foreign investment in the long run. We foresee players from China and Malaysia setting up manufacturing hubs in India, thus furthering the ‘Make in India’ initiative. Moreover, while there are ample module manufacturers in the country to meet the Government demands, the proposal would provide impetus to existing and new players to venture into cell production, thus creating job opportunities and enhancing the GDP contribution in the long run.”