Solar module makers of India are grappling to remain in business since the cost discrepancy with imports has broadened to 10–12%. This prompted the developers to select overseas products, stunting “Make in India” campaign of the government.
Almost all chief domestic companies such as Tata Power Solar, Indosolar, Jupiter Solar, Adani Group, and state-run Bhel are grappling to stay practical in the face of undercutting by more affordable supplies from modules produced by Chinese-controlled firms situated outside and in the mainland. The condition is analogous to what took place a decade ago when the government started a determined plan to extend capacity of thermal generation. Developers selected for more affordable equipment from China to provide less tariffs, which almost pushed local producers to the edge till the government leveled the area with quality and various rules.
Sarcastically, the government is encountered with the similar question as it aims to install 100 Giga Watt (GW) capacity of solar power by the end of 2022. India is anticipated to place orders for almost 80,000 mega watt (MW) of solar power set ups worth almost Rs 2.44 Lakh Crore at present costs. Solar power capacity at utility scale of India stands at 16 GW, whereas 11.5 GW is in scheduled and 5.6 GW is being geared up for proposals.
Last year cheaper imports assisted pull down tariff on solar power to Rs 2.44 each unit, or less than coal-powered electricity. But a mob of imports has made local producers fear for their investment worth $2 Billion. “Local producers have almost 3,000–4,000 MW of projects tendered or set up. Developers favor affordable equipment since their interest lasts 5–7 years within which they look to recuperate price. But projects have a span of 25 Years,” claimed Vikram Solar’s Karunesh Kumar Chaturvedi to the media in an interview.