Parliament Question: Promoting Domestic Manufacture of Solar Equipments

GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY LOK SABHA UNSTARRED QUESTION NO. 4016 ANSWERED ON 12.08.2026 PROMOTING DOMESTIC MANUFACTURE OF SOLAR EQUIPMENTS 4016. SMT. ANITA NAGARSINGH CHOUHAN Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state: (a) whether the Government is implementing any special policy to encourage the production of solar modules and solar cell components with the objective of promoting domestic manufacturing of solar energy equipment and to reduce dependence on imports and if so, the details thereof; (b) the details of the approved investment and installed manufacturing capacity so far under the Production Linked Incentive (PLI) scheme and other schemes; (c) whether any special scheme is proposed to promote the establishment of solar manufacturing units, research and skill development in various States including Madhya Pradesh; and (d) whether the Government proposes to implement additional incentives and policy reforms to develop India as a global solar manufacturing and export hub by strengthening the domestic solar power generation ecosystem and if so, the details thereof? ANSWER THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER (SHRI SHRIPAD YESSO NAIK) (a) The Government has taken several measures to promote domestic solar cell and module manufacturing and reduce dependence on imports. These measures include Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, Domestic Content Requirement (DCR) provisions under certain schemes of the Ministry of New and Renewable Energy (MNRE), exemption of customs duty on import of specified capital goods required for manufacture of solar cells and modules, and imposition of Basic Customs Duty (BCD) on imported solar PV cells and modules. (b) As per the information provided by the selected manufacturers under the PLI Scheme for High Efficiency Solar PV Modules, an investment of around ₹73,400 crore has been made as on 30.06.2026. As on 30.06.2026, under the scheme, around 42 GW of solar PV module manufacturing capacity, around 12 GW of solar PV cell manufacturing capacity, and around 2 GW of ingot-wafer manufacturing capacity have been set up. The aforesaid capacities include around 3.4 GW of fully integrated thin-film solar PV module manufacturing capacity. (c) The Ministry of New and Renewable Energy (MNRE), Government of India, has been consistently bringing out policies to promote the establishment of solar manufacturing units, research and skill development in various States including Madhya Pradesh. Various initiatives taken, inter-alia, include those mentioned at Annexure-I. (d) The measures mentioned in reply to part (a) are contributing to the overall development of domestic solar PV manufacturing, including promoting exports. As per the Export-Import Data Bank of the Department of Commerce, India exported solar PV modules worth around USD 83 million in FY 2021-22, which increased to around USD 1,051 million in FY 2025-26. *****Annexure-I Annexure referred to in reply of part (c) of the Lok Sabha Unstarred Question No. 4016 for 12.08.2026 regarding ‘Promoting Domestic Manufacture of Solar Equipments’ (i) Production Linked Incentive (PLI) Scheme: The Government of India is implementing the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules. Under the Scheme, Letters of Award have been issued for setting up of 48,337 MW of fully/ partially integrated solar PV module manufacturing units. (ii) Domestic Content Requirement (DCR): Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya Ghar: Muft Bijli Yojana, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources. (iii) Imposition of Basic Customs Duty on import of solar PV cells and modules: The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and solar PV modules. (iv) Exemption of Custom Duty on capital goods for manufacture of Solar Cells and Modules: The Government has exempted Basic Customs Duty on import of specified goods for the manufacturer of solar PV cells and modules. (v) Human Resource Development programme & Entrepreneurship and Skill Development Programme (ESDP): MNRE is implementing an Entrepreneurship and Skill Development Programme (ESDP) on Solar Entrepreneurship under the capacity building component of PM Suryghar:Muft Bijli Yojana (PMSGMBY) through National Institute of Entrepreneurship and small Business Development (NIESBUD). MNRE also implements the Suryamitra and Varunmitra trainings under short term training component of Human Resource Development programme, to train youth of age above 18 years as solar PV technicians for installation, operation and maintenance of solar power projects and solar water pumping systems respectively. (vi) Renewable Energy Research and Technology Development (RE-RTD) Programme: MNRE implements the Renewable Energy Research and Technology Development (RE-RTD) Programme across the country, including in the State of Madhya Pradesh, to promote indigenous research, innovation and technology development in renewable energy, including solar technologies. Under the programme, financial assistance of up to 100% is provided to Government/non-profit research organizations and up to 70% to industry, private institutes, entrepreneurs and manufacturing units for eligible R&D projects. The programme supports the development of indigenous technologies and manufacturing for renewable energy applications, including solar energy, through collaboration with research institutions and industry.