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By Sethuraman N R
NEW DELHI, Aug 7 (Reuters) – India is preparing a production-linked incentive scheme to encourage domestic polysilicon manufacturing, the country’s ‌top clean energy ministry official said on Friday.
Here are some details on ‌the incentive scheme:
• It would extend India’s manufacturing incentive push deeper into the solar supply chain ​and reduce import dependence, Santosh Kumar Sarangi, secretary at the clean energy ministry, said at a Confederation of Indian Industry event in New Delhi.
• Polysilicon is a key raw material used in solar photovoltaic panels, and India relies entirely on ‌imports from China.
• India is ⁠targeting 500 gigawatts of non-fossil fuel power capacity by 2030.
• The renewable energy ministry has increasingly focused on local manufacturing ⁠as developers ramp up solar installations, seeking to reduce exposure to imported equipment and build a domestic supply chain.
• India has previously offered 240 billion rupees ($2.52 billion) in ​manufacturing-linked ​incentives for solar panel and cell production.
• ​The new scheme could cover more ‌than 10 GW of production capacity, Sarangi said, without disclosing the size of the financial incentive.
• The proposed move comes as New Delhi seeks to create an integrated solar manufacturing ecosystem spanning modules, cells, wafers, ingots and polysilicon, segments that are dominated globally by Chinese producers.
• India has already built more than ‌200 GW of solar panel manufacturing capacity ​and more than 32 GW of solar cell ​capacity, while another 100 GW ​of cell capacity is expected to come online within about ‌a year, Sarangi said.
• The country is ​also targeting at ​least 80 GW of solar ingot and wafer manufacturing capacity by June 2028, he said.
• Deeper domestic manufacturing would strengthen India’s clean energy ambitions ​and industrial competitiveness, Sarangi ‌said.
• Polysilicon also has semiconductor applications, potentially broadening the economic benefits ​of new investment beyond solar manufacturing, he said.
($1 = 95.2750 Indian rupees)
(Reporting ​by Sethuraman NR; Editing by Rashmi Aich)
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