MNRE Releases Strict Penalties for Violating Domestic Content Requirement in Solar Power Projects
In a move to bolster the domestic manufacturing of solar photovoltaic (PV) cells and modules, the Ministry of New and Renewable Energy (MNRE) in India has notified penalties for violations of the Domestic Content Requirement (DCR) under its solar PV power projects.
October 17, 2023. By News Bureau
To deter misuse of this policy and ensure the use of domestically manufactured components, the MNRE issued an Office Memorandum (OM) on 20 February 2018, which outlines severe consequences for any violation of the DCR provisions.
The OM highlights the following actions that will be taken by the MNRE or its authorised agencies if DCR provisions are violated:
1. Criminal Case Filing: Violators will be subject to criminal proceedings under the Indian Penal Code (IPC) section 420 and related sections. This includes charges for mis-declaration and the use of imported solar cells and modules in DCR projects.
2.Blacklisting Developers: Developers found in violation of DCR provisions will face a ten-year blacklist, preventing them from participating in MNRE's solar projects.
3. Forfeiture of Bank Guarantees: Relevant bank guarantees will be forfeited, ensuring financial repercussions for non-compliance.
4.Disciplinary Action: Disciplinary action will be initiated against the officers of concerned Central Public Sector Undertakings (CPSUs) and state governments involved in such projects.
5. Additional Actions: Any other necessary actions will also be considered, as deemed appropriate by the MNRE.
The MNRE's renewed commitment to enforce DCR provisions is vital to boost the growth of domestic solar manufacturing in India. By adhering to these strict measures, the government aims to protect the interests of local manufacturers and ensure the nation's self-reliance in the solar industry.
Sanjay G. Karndhar, Scientist-E at the MNRE, emphasises that DCR provisions must be diligently followed. The consequences for violations, as outlined in the OM, have been approved by the competent authority and underscore the Indian government's commitment to promoting domestic solar manufacturing.
In light of these stringent penalties, stakeholders, including solar developers, CPSUs, and government organisations implementing solar projects, have been reminded to strictly comply with the DCR provisions mandated under the respective schemes and programs of the MNRE.
The measures introduced by the MNRE serve as a strong deterrent against the potential misuse of the DCR policy, ensuring that solar power projects in India increasingly rely on locally produced components, thereby driving economic growth and self-sufficiency in the solar sector.
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