RE & Power Manufacturing Zone On Pilot Basis

• MNRE and MoP have jointly launched an EOI seeking applicants to set up a brownfield manufacturing zone on pilot basis for power and renewable energy sector
• It is part of plans to establish a total of 3 zones can be set up, 2 brownfield and 1 greenfield with the latter being in a coastal region
• Government has fixed an outlay of INR 10 billion for the projects under the scheme that will run for 5 years
• India wants to reduce dependence on imported equipment for the sectors by encouraging domestic manufacturing

The Ministry of New and Renewable Energy (MNRE) and the Ministry of Power (MoP) in India have invited proposals to set up a brownfield manufacturing zone for power and renewable energy equipment on pilot basis, to promote local manufacturing.

Eligible applicants can be a state government of a special purpose vehicle (SPV) in partnership with a state government. The SPV will be incorporated as a limited company, headed by a Chief Executive Officer (CEO). Each state will be allowed to submit only 1 proposal.

It is part of the government's plans to set up 3 manufacturing zones in all, comprising 2 brownfield and 1 greenfield manufacturing zone in a coastal area with a total financial outlay of INR 10 billion ($131 million). For a single manufacturing zone, there is a ceiling of INR 4 billion ($52 million). The scheme will run for 5 years, from FY 2021-22 to FY 2025-26.

Under the expression of interest (EOI) launched, solar PV, wind and other renewable energy technologies can be considered for the zone. In terms of eligible products for solar PV, the indicative list identifies equipment for which indigenous manufacturing capacity is not available or is in limited capacity. For solar PV it spans PV modules, thin film, inverters, trackers, PV cells, silicon wafers, silicon ingots, polysilicon, glass, junction box, aluminum frames, encapsulant among others.

While responding to the expression of interest (EOI), the application should be accompanied by details of the company, cost of development of manufacturing zone and tentative source of funds, details of land, policy incentives given or proposed by state government for the zone, undertaking for commitment to provide 24×7 availability of power supply, among others.

The aim of this EOI is to establish a manufacturing facility based on cutting edge, clean and energy efficient technology to minimize India's dependency on imported equipment/critical component/critical spare, and the like for the 2 sectors. It will also promote Indian government's stress on Make in India campaign as it aims to grow its renewable energy installations to 450 GW by 2030.

Complete EOIs can be submitted latest by June 8, 2022. Further details are available on the MNRE's website.