Solar module makers including Reliance Industries Ltd. and Tata Power Co. are among bidders for 195 billion rupees ($2.4 billion) in financial incentives that India is offering to expand domestic manufacturing and curb panel imports from dominant producer China.
(Bloomberg) — Solar module makers including Reliance Industries Ltd. and Tata Power Co. are among bidders for 195 billion rupees ($2.4 billion) in financial incentives that India is offering to expand domestic manufacturing and curb panel imports from dominant producer China.
Others showing interest include U.S. firm First Solar Inc. and Indian companies JSW Energy Ltd., Avaada Group and ReNew Energy Global Plc, according to the renewable energy ministry. It said a total of 11 companies entered the bidding, though the embattled Adani Group, one of the country’s largest solar panel makers, did not join in.
The financial assistance is part of Prime Minister Narendra Modi’s aim to turn the nation into a manufacturing powerhouse, creating more jobs in the economy and reducing imports that can drain foreign exchange. His “Make in India” campaign is an effort to showcase the country as an alternative to China amid a global push to diversify supply chains in the wake of the pandemic.
The government is offering grants to take the country’s module-making capacity to as much as 90 gigawatts by fiscal 2026, enough to meet its own requirements and serve export markets.
Still, the bids come amid concerns that the focus on domestic manufacturing is slowing down renewable power projects. Power Minister Raj Kumar Singh said last month the government is considering temporarily “relaxing” a key barrier to module imports to speed up projects. The country currently has about 10 gigawatts of module capacity fit for making grid-scale installations, too small to meet the demand, he said.
Spokesmen at Reliance, Avaada Group and JSW Energy declined to comment. Adani, Tata Power, ReNew and First Solar didn’t immediately respond to emailed requests for comment.
The absence of Adani from the bidding adds to a spate of project retreats by the conglomerate, as it seeks to preserve cash in the wake of accounting fraud allegations by the US short-seller Hindenburg Research. The group has denied the allegations. The prospect of import barriers being eased may have also helped damp interest in the solar grants.
The bids, being conducted by state-run Solar Energy Corp., closed Feb. 28, after being extended multiple times. Details on incentives and projects aren’t yet available.
(Updates with government confirming bidders, and background on Adani.)
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