India faces basic contradiction in drafting policies for renewables sector

Frequent changes in rules governing domestic equipment use in projects is slowing capacity addition

India is facing a basic contradiction in drafting policies for the renewables sector. On one hand, the government seeks to boost domestic equipment manufacturing to promote “Aatmanirbharta”, a theme that echoes back to Prime Minister Indira Gandhi; on the other, it has set ambitious generation targets. Over time, these contradictions may be reconciled with a helping hand from the market and a generation of new entrepreneurs. But until then, industry officials said, they are acting as speed bumps on the road to clean energy.

The latest change involves postponing a mandate for the use of domestically manufactured modules in building