Giving domestic solar manufacturers a leg-up

In 2010-12 nearly 80% of projects tendered were in the DCR category; in 2013-14 it was just 50%

Solar photovoltaic modules are the most important components of a solar power plant and developing a robust local manufacturing capability is key to creating jobs, reducing forex outflows and increasing foreign investment. Domestic solar manufacturers need to be supported, to enable them to compete in the domestic and international markets against the implicit subsidies provided to imported modules. This article focuses on the current market scenario for domestic modules, and recommends a roadmap.  

The government’s decision to hold separate auctions for solar projects that will exclusively use domestically manufactured modules (with imported cells), has huge potential to develop local manufacturing.