‘No flow’ of incentives to Indian solar manufacturers

Facebook
Twitter
LinkedIn
Reddit
Email
The delays echo problems with the preceding incentive known as SIPS. Credit: Lanco Infratech

Subsidies for Indian cell and module manufacturers are being hampered by delays, as shown by data from the Department for Electronics and Information Technology (MEIT).

A total of seven companies that have applied for an incentive for electronics manufacturers, known as the Modified Special Incentive Package Scheme (M-SIPS), were still waiting for approval as of September last year, with some having applied a full year earlier.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Jasmeet Khurana, associate director, consulting at Bridge to India, told PV Tech: “The key message is that a lot of people have been talking about setting up manufacturing in India, but only a very few of them have actually gone ahead and submitted applications to government for incentives under the existing policy and within that the sanctions are often fairly delayed – not just for solar but just M-SIPS programme overall.”

The M-SIPS scheme offers a 20-25% capital subsidy for units engaged in electronics manufacturing. For high capital investment projects like fabs, it also provides for reimbursement of central taxes and duties.

MEIT data showed M-SIPS applications from PV manufacturers. It is likely that come companies have put in separate applications for cells and modules as they have different subsidies, said Khurana:

Company name Date of application Planned capacity of cells/Modules (MW)
Mundra Solar Sep 2015 1,000
Mundra Solar Sep 2015 2,000
Saatvik Green Energy Dec 2015 115
Premier Solar Systems Dec 2015 200
Bharat Heavy Electricals Mar 2016 20
Bharat Heavy Electricals Mar 2016 105
Jupiter International Apr 2016 214
Sahaj Solar June 2016 150
Vikram Solar July 2016 400

The delays echo problems with the preceding incentive known as SIPS, which only applied to solar cells, not modules. Many manufacturers that applied for SIPS 6-8 years ago before setting up facilities have still not received any incentive due to disputes and other issues, despite these subsidies being sanctioned, added Khurana.

While some of the M-SIPs incentives may have now come through – given the ministry data is as of September 2016 – Khurana said: “There has been no flow of money.”

India's domestic PV manufacturing industry faces an uphill struggle with the influx of extremely cheap equipment imports from China, driven by weakened demand from within China, and the loss of the World Trade Organisation (WTO) dispute with the US over India's local content requirment policy.

Read Next

June 9, 2025
Saatvik Solar, a unit of Saatvik Green Energy Limited (SGEL), is building a 4.8GW solar cell and 4GW module manufacturing facility in Ganjam district of Odisha.
June 5, 2025
Solar manufacturer Involt Energy has broken ground on its first solar cell manufacturing plant in the western Indian state of Gujarat, with an initial annual nameplate capacity of 1.78GW. 
June 5, 2025
Indian solar module manufacturer Vikram Solar has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) and raise capital through the public markets.
June 5, 2025
Investment in clean energy and grids will reach US$2.2 trillion in 2025, double the expected investment into fossil fuels this year, according to data from the International Energy Agency (IEA).
June 2, 2025
Arctech has partnered with ACME Cleantech Solutions to provide 175MW worth of solar trackers for an upcoming facility in Duqm, Oman.
May 30, 2025
Waaree Solar Americas – a subsidiary of Indian solar manufacturer Waaree Energies – has signed a 586MW solar module supply agreement with North Carolina-based Pine Gate Renewables.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece