Government Initiatives for solar energy: UPSC Daily Important Topic | 13 August 2022

Government Initiatives for solar energy

✓PLI scheme to Support Manufacturing:

The Scheme has provisions for supporting the setting up of integrated manufacturing units of high-efficiency solar PV modules by providing Production Linked Incentive (PLI) on sales of such solar PV modules.

✓Domestic Content Requirement (DCR):

Under some of the current schemes of the Ministry of New & Renewable Energy (MNRE), namely Central Public Sector Undertaking (CPSU) Scheme Phase-II, PM-KUSUM, and Grid-connected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.

Further, the government made it mandatory to procure modules only from an Approved List of Manufacturers (ALMM) for projects that are connected to state/ central government grids.

✓Imposition of Basic Customs Duty on import of solar PV cells & modules:

The Government has announced the imposition of Basic Customs Duty (BCD) on the import of solar PV cells and modules.

Further, it has imposed a 40% duty on the import of modules and a 25% duty on the import of cells.

Basic custom duty is the duty imposed on the value of the goods at a specific rate.

✓Modified Special Incentive Package Scheme (M-SIPS):

It’s a scheme of the Ministry of Electronics & Information Technology.

The scheme mainly provides a subsidy for capital expenditure on Pv cells and modules – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZ.