Reliance, Tata bid for $2.4 billion in solar subsidies in India
Reliance Industries Ltd. and Tata Power Co. are two solar module manufacturers that have submitted bids for 195 billion rupees ($2.4 billion) in financial incentives that India is proposing to boost domestic production and reduce panel imports from main supplier 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 people familiar with the matter, who asked not to be named as the information hasn’t been made public. The embattled Adani Group, one of the country’s largest solar panel makers,was not among the bidders, the people said. 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, 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, undermining India’s transition targets. Power Minister Raj Kumar Singh said last month that his ministry is considering temporarily “relaxing” a key barrier to module imports to speed up projects.
Avaada Group, JSW Energy, and Reliance spokesmen all declined to comment. Email inquiries for response from the renewables ministry, Adani, Tata Power, ReNew, and First Solar were not immediately answered. After being repeatedly prolonged, the bids, which were being handled by the government-run Solar Energy Corp., finished on February 28. There are currently no published details on projects or incentives.