In Short : The Indian government has announced its intention to take strict action against solar power developers found violating sourcing rules. This move is aimed at ensuring compliance with regulations and maintaining transparency in the renewable energy sector. By enforcing these regulations, the government aims to promote fair practices, encourage responsible sourcing, and foster the growth of renewable energy projects across the country. This step aligns with India’s commitment to expanding its renewable energy capacity and achieving its sustainable energy goals.
In Detail : New Delhi : The central government has issued warning to solar power developers of strict action if they are found breaking norms that require the use of solar modules from domestic sources in projects funded under government schemes, reported Mint.
In an office memorandum, the ministry of new and renewable energy (MNRE), reiterated that it would resort to filing of criminal complaint under IPC 420, blacklist the developer for 10 years or even take disciplinary action against the concerned PSU or government agency.
The government came up with these domestic content requirement norms in 2018 wherein it had outlined the penalties for non-compliance.
Domestic content requirements are trade regulations to promote domestic production and employment by mandating a particular percentage of a product’s value to be sourced locally.
Under some of the current schemes of MNRE, including CPSU Scheme Phase-II, PM-KUSUM, and grid-connected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar photovoltaic cells and modules from domestic producers.
Noting that the ministry in February 2018 had announced to enforce strict action in cases where the domestic content requirement has been mandated, the notification said, “Apprehensions have again been raise regarding supply of such solar PV modules under MNRE’s schemes/programmes, which may not be fully compliant to the domestic content requirement (DCR) provisions prescribed under respective schemes/programmes of ministry of new & renewable energy.”
“Accordingly, it is once again reiterated that domestic content requirement provision as mandated under the respective schemes/programmes of ministry of new & renewable energy should be strictly complied to and any violation of such DCR provision will invite actions,” it said.
This is among a series of steps taken by the government over the past few years to reduce cheaper imports and boost domestic manufacturing of solar modules and other related products like cells and wafers.
