Solar manufacturing schemes face hurdles over subsidy, WTO rules

Ministry officials said they have received several representations from several industry bodies and they are being studied

A subsidy scheme for promoting solar power equipment manufacturing is awaiting approval of the finance ministry while another one that offers assured power offtake to manufacturers is embroiled in World Trade Organisation (WTO) regulations.

Officials said a Rs 160 billion capital subsidy was available to domestic and foreign players to set up end-to-end solar power equipment manufacturing in India. Under the M-SIPS scheme, the subsidy is to be disbursed after the setting up of the facility. The industry, however, has sought an upfront subsidy and interest subvention.

“The process of disbursal of the capital subsidy is complex and based on the reimbursement