JNNSM Phase II focus on domestic content requirement


The recently published draft guideline for JNNSM Phase 2 focuses on domestic content requirement. While on one side, the Phase 2 promotes about 4000-5000 MW manufacturing capacity in the country, considering the current manufacturing capacity of 1500 MW, the local panel manufacturers are facing tough time to face competition from the imported modules. The Phase-1 was having 50% of modules from the domestic manufacturers which were predominantly polycrystalline and the imported modules were of thin film technology. Current reduction in module prices has brought the crystalline and thin film technologies at par in terms of per peak watt pricing. There are various options proposed in Phase-2 to promote domestic content requirements which focus on the basis of PV projects which use Viability Gap Funding (VGF) should have cells and modules produced in India. There will be few batches which will promote 100% domestic content requirement. There is a possibility to also define domestic content in cost terms (say 50%) for both PV and thermal technologies.

While the current manufacturing capacity is about 1500 MW per year in the country, its important that we promote domestic manufacturers and in increase this capacity to about 5000 MW per year so that country can have 50% of indigenized solar projects. The Government is also planning to put up anti-dumping duty so that the Indian manufacturers can compete in price terms with imported manufacturers. The typical per peak watt price of Indian modules is in the range of 0.7-0.8 USD per Wp which is about 15-20% higher than the imported modules. Putting anti-dumping duty of 10-15% on the imported modules will bring Indian manufacturers at par with the foreign manufacturers in terms of price per Watt peak.

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