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allocations toward Indian cell and module manufacturers. The overall market is still highly skewed towards imports due to the low pricing and bulk supply offered by bigger Chinese companies. Hence, we do not believe the WTO decision to have a major impact on the Indian solar industry. Mr. Prasad Chaporkar: The Domestic Content Requirement (DCR) initiative from the Government of India was a modest attempt to help the local Solar PV industry grow. The Government was never in an over protection mode and have provided ample avenues for all international players to do business in India without any restrictions. The DCR was not intended to restrict foreign players but was more to provide opportunities and time to the local industry to come up to speed. I don’t see much of an impact on the Indian Solar Industry with this decision of WTO, except that the local manufacturers would find it bit challenging to grow quickly in absence of support. ENERGETICA INDIA: The Indian government may now have to adjust some of the policies to comply with WTO trade rules or risk sanctions or consider an appeal against the ruling. As a stakeholder in India’s solar industry, what step do you think so be taken? What policy adjustments can the government consider to comply with WTO ruling and also to encourage Indian Solar manufacturing? Mr. Pankaj Desai: If we are targeting 100 GW installations, it becomes very important to encourage Indian solar manufacturers. At present we are less than 5% production capacity of the current target. And current 80% of the installation orders go to the foreign country manufacturers. Indian Government should have similar to ARRA (American Recovery and Reinvestment Act) act policies to encourage Indian solar manufacturers. Mr. Rahul Gupta: Government should remove DCR requirement as per WTO decision but instead promote Indian manufacturing industry in form of tax benefits, cheaper electricity, providing required infrastructure and subsidised loans and working capital. These measures will help domestic manufactures to compete against international manufactures We should create a robust domestic industry which can provide quality solar modules at cheaper rates, providing DCR projects will not be a long term vision to support domestic manufacturing instead providing support to create innovative domestic manufactures which can offer better products than international manufactures will be good. Mr. Vineet Mittal: For Indian solar manufacturing to grow, what is more important is the fiscal support in terms of lower interest cost on borrowed funds, taxation benefits, and duty free import of raw materials as well as national exemption from local sales tax. Apart from above, regular technology up-gradation is a must and government needs to support the Indian manufacturers by providing easy access to lower cost of financing. Once these are achieved, like in other sectors, India can be a global exporter of solar products and not depend on only Indian DCR projects for their survival. Mr. Prasad Chaporkar: The government should consider policy adjustments to ensure that the spirit of providing support for the local industry to contribute in a big way remains intact. What we need is that the local industry should contribute to the maximum possible extent to our own requirements. We also need to prepare a solid ground for the industry in India so the next big jump in Solar Technology is initiated in India. The Government can consider special incentives, tariffs for the projects which use domestically manufactured cells and modules. ENERGETICA INDIA: Besides the policy, what other encouragement/facilities can the government provide to boost growth of solar manufacturing in India? Mr. Pankaj Desai: a) We should have anti dumping duty on solar modules against non fair competitors’ countries. We should invite all investors to come and invest in India for production. This will bring a healthy competition for Indian manufacturers. Our foreign guest will be adopting Indian business environment, infrastructure and create jobs in India SOLAR POWER b) In case option A is not possible then we should have some incentives or subsidies for selling in the Indian and oversees market. Mr. Rahul Gupta: As mentioned in previous points, tax benefits, cheaper electricity, subsidies loans and working capital will help domestic manufactures compete against international manufactures. Mr. Vineet Mittal: If India seeks to really make its Make In India program a grand success, then they have to focus on global competitiveness in manufacturing at every stage like technology, manpower skills, infrastructure, lower interest cost, simplified and foreseeable tax regime, long term taxation benefits, etc. to name a few. Also, since solar power is becoming increasingly affordable to the common man, government needs to invest in spreading the awareness about the various benefits of solar power and how one can benefit out of the same. Solar manufacturing needs to be tapped as soon as possible otherwise India will remain behind like the semiconductor industry where India is now importing major portion of its electronic goods. Mr. Prasad Chaporkar: The Government should consider providing a cash subsidy on investment. Investments in manufacturing of the complete supply chain starting from poly silicon, ingots, wafers, solar cells and up to the final solar modules are required to be encouraged. Some of the incentives that can be provided to encourage local manufacturing are: • Assured sale for production through PPA, • Export benefits, and • Opportunity for existing manufactures to get a PPA Also, the Government can think of providing Viability Gap Funding (VGF) for companies which manufacture in India. Production based incentives is also something that the Government should consider. For example, based on production at each level manufactures get incentives for his production contribution 19 energetica INDIA · MAR | APR16


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