Support for Manufacturing and other Policies Announced in India in December 2017

Central and state government agencies across India announced important new policies and made changes to a few existing policies during December. Here are some of the highlights.

National

The government announced much-needed remedial measures to stop the misclassification of solar modules at India’s ports.

In an effort to ensure reliable electricity services are available for all Indians, Power Minister Raj Kumar Singh announced a plan to penalize distribution companies (DISCOMs) that indulge in “gratuitous load-shedding.”

MNRE

MNRE proposed a slew of subsidies and incentives, including: direct financial support of more than ₹110 billion (~$1.7 billion) for manufacturers to expand and upgrade, a 12 GW Central Public Sector Undertaking (CPSU) domestic content requirement (DCR) program to create robust domestic demand, an increasing annual DCR requirement for modules to polysilicon, a 30 percent central financial assistance program, cheaper loans, a custom duty exemption, and cheaper power.

MNRE issued a new National Lab Policy (NLP) to improve the quality and reliability of renewable energy projects in India.

State Policies

The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) program to electrify all willing households in India using solar power was launched in Jammu & Kashmir on December 11, 2017.

Madhya Pradesh joined the SAUBHAGYA program.

Uttar Pradesh’s cabinet of ministers approved the state’s Draft Solar Policy 2017 and gave it a retroactive effective date of November 6, 2017.

The government and cabinet of ministers of Goa approved the state’s Draft Solar Policy 2017, which sets a target of achieving 150 MW of solar by 2021.

The Madhya Pradesh Electricity Regulatory Commission (MPERC) kept intact the must-run status for power generated from wind, solar, small hydro, and municipal solid projects.

The Bihar Electricity Regulatory Commission (BERC) released a draft document for rooftop net metering regulations that is open to comments and suggestions until January 5, 2018.

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) won approval to procure wind, solar, and bagasse-based cogeneration power at a rate discovered through a tariff‑based competitive bidding process.

Priya SanjayPriya currently serves as the Publisher for MercomIndia.com. With more than a decade of experience working in corporate communications, research, and policy, Priya has deep roots in the Indian energy markets and is regularly in touch with policy makers and industry leaders. Priya received her bachelor’s degree from Vidya Vardhaka College of Arts in Bangalore, India for Political Science and Economics and completed her MBA from Bangalore University. More articles from Priya Sanjay.