The solution for unlocking India’s solar potential lies in strengthening its domestic production infrastructure. Analyse (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· India accounts for merely 1% of the global production capacity; in contrast, China makes up 71%. With India missing competitiveness, there is huge dependence on imports of solar cells and modules.
· To combat this import dependence, the finance ministry has already ordered imposition of 40% and 25% Basic Custom Duty (BCD) on the import of solar modules and solar cells, respectively, from April 1, 2022.
· In India, purchasing the required material for solar energy production is a cost-intensive activity because of the existing policies, which puts Indian companies in a disadvantaged position as compared to other foreign players.
· The dismal state of documentation of land ownership is one of the key reasons that cause complications in the land acquisition/purchase process.
· Other factors that need to be considered for facilitating land availability for setting up solar plants include relaxing land ceiling limits for solar energy developers.
· Given India’s demographic dividend advantage, labour supply does not appear to be a problem; however, ensuring the right skilling is the key.
· This requires organising training programs that aim to impart the right skills needed for the solar energy sector, and Budget FY23 has recognised and addressed these needs for the overall economy.
