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					</table><p>The Ministry of Heavy Industries (<a href="https://heavyindustries.gov.in/">MHI</a>) has issued guidelines for its ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).’</p>
<p>The program aims to enable fresh investments from global manufacturers in the electric vehicle (EV) passenger car segment.</p>
<p>Companies seeking to participate in this program must commit ₹41.5 billion (~$486 million) within three years from the application approval date. This investment will be used to establish manufacturing facilities for electric passenger cars within the country.</p>
<p>To encourage global manufacturers to invest under the program, approved applicants will be allowed to import completely built-in units of e-4Ws (eligible products) with minimum cost, insurance, and a freight value of $35,000. The import will be allowed at a reduced customs duty rate of 15% for five years from the application approval date.</p>
<p>The maximum number of e-4Ws allowed for import at the reduced duty rate will be capped at 8,000 per year. The unutilized annual import limits can carry over to the next year.</p>
<p>The maximum duty forgone per applicant under the program is capped at ₹64.84 billion (~$759.4 million).</p>
<p>The standard operating procedure issued under the production-linked incentives program for automobiles and auto components will be followed to assess the domestic value addition (DVA) of the eligible product. The minimum DVA to be achieved within three years is 25%, and within five years is 50%.</p>
<p>Investments must target domestic manufacturing of eligible products. If the program&#8217;s investment is directed towards a brownfield project, there must be a clear physical separation from current manufacturing facilities.</p>
<p>Expenditures incurred on new plants, machinery, equipment, and associated utilities, as well as engineering research and development, would be eligible.</p>
<p>Land expenditure will not be considered. However, buildings of the main plant and utilities will be included as part of the investment, provided they do not exceed 10% of the committed investment.</p>
<p>Charging infrastructure expenses will be regarded as a maximum of 5% of the total committed investment.</p>
<p><strong>Application Process </strong></p>
<p>Applications are open for 120 days. MHI can reopen the application window as needed until June 15, 2026.</p>
<p>Interested applicants must pay a non-refundable application fee of ₹500,000 (~$5,856.27).</p>
<p>Applicants&#8217; global group revenue (from automotive manufacturing) must be at least ₹100 billion (~$1.1 billion), and their global investment or group in fixed assets must be ₹30 billion (~$351.3 million).</p>
<p>MHI first introduced the program in 2024, with the Department of Finance issuing notifications reducing import duties in line with the program&#8217;s provisions.</p>
<p>The program aims to enable fresh investments from global manufacturers in the electric vehicle (EV) passenger car segment.</p>
<p>Recently, MHI <a href="https://www.mercomindia.com/mhi-mandates-100-dcr-requirement-for-18-ev-components-under-pm-e-drive" target="_blank" rel="noopener">mandated</a> a 100% domestic content requirement for 18 EV components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.</p>
<p>EV sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-2024" target="_blank" rel="noopener">reached</a> a record 1.95 million units in 2024, an over 27% growth year-over-year.</p>


Heavy Industries Ministry Issues Guidelines for Electric Car Manufacturing


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					</table><p>According to the latest International Energy Agency&#8217;s (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) World Energy Outlook, manufacturing capacity for solar modules is rapidly growing and has the potential to surpass 1,200 GW per year by the end of this decade.</p>
<p>The report points out the potential emergence of a new clean energy economy driven by solar PV technology and electric vehicles (EVs). It notes that the investment in clean energy has experienced a 40% surge since 2020.</p>
<p><strong>Solar Manufacturing&#8217;s Global Impact</strong></p>
<p>Over the last decade, solar manufacturing has grown exponentially, driven by the increasing demand for clean energy. Investments in the pipeline are set to elevate global solar module manufacturing capacity from 640 GW in 2022 to over 1,200 GW by 2030.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-60123 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Picture1.png" alt="" width="655" height="455" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Picture1.png 655w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Picture1-300x208.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Picture1-650x452.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Picture1-624x433.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Picture1-600x417.png 600w" sizes="(max-width: 655px) 100vw, 655px" /></p>
<p>The manufacturing of solar PV modules has expanded even faster than deployment, resulting in a drop in utilization rates from around 60% to under 40% in 2022, well below the healthy 70% level for a mature industry.</p>
<p>Despite the projected rise in solar PV deployment from 220 GW in 2022 to about 500 GW in 2030, the utilization rate remains under 40%. Optimizing solar manufacturing capacity offers a substantial opportunity to speed up solar PV deployment and energy transitions.</p>
<p>Solar manufacturing is currently highly concentrated in five countries, led by China, accounting for over 90% of global capacity. The other four are Vietnam (5% of the global market), India (3%), Malaysia (3%), and Thailand (2%). The next five leading solar manufacturers – the United States, Korea, Cambodia, Türkiye, and Chinese Taipei – each account for around 1% of the global total, as does the European Union.</p>
<p>Over 100 countries implemented solar PV projects in 2022, mostly relying on imported panels, with China being the primary exporter. Plans for additional capacity suggest that manufacturing will stay concentrated, emphasizing the importance of trade for many markets.</p>
<p>China plans to add another 500 GW of solar module manufacturing capacity, India aims to expand, Southeast Asia will remain an essential exporter, the U.S. is boosting production capacity, and the European Union plans to double its manufacturing.</p>
<p>By scaling up solar PV deployment, an additional 800 GW of solar PV could be deployed in 2030, equivalent to the NZE Scenario&#8217;s level.</p>
<p>According to another report from the IEA, global investments in clean energy could <a href="https://www.mercomindia.com/global-investments-clean-energy-1-8-trillion-2023-iea" target="_blank" rel="noopener">reach</a> an unprecedented $1.8 trillion in 2023, but this must increase significantly to about $4.5 trillion annually by early 2030 to align with the NZE scenario.</p>
<p>The IEA said in June that global renewable capacity additions are set to <a href="https://www.mercomindia.com/iea-renewable-additions-107-gw-2023" target="_blank" rel="noopener">soar</a> by an unprecedented 107 GW to over 440 GW in 2023.</p>


Global Solar Module Manufacturing Capacity to Exceed 1,200 GW by 2030: IEA

<p>Shapoorji Pallonji Infrastructure Capital (<a href="http://www.spinfra.co.in/sp-infra/" target="_blank" rel="noopener noreferrer">SP Infra</a>), a part of the Shapoorji Pallonji Group and <a href="https://www.kkr.com/" target="_blank" rel="noopener noreferrer">KKR</a>, a global investment firm, have signed an agreement under which the SP Infra will sell five of its operational solar energy assets to KKR for ₹15.54 billion (~$204 million).</p>
<p>The portfolio comprises 169 MW of solar assets in Maharashtra and 148 MW in Tamil Nadu, totaling 317 MW capacity.</p>
<p>According to the company’s statement, “India is a key part of KKR’s Asia Infrastructure strategy, and this announced transaction is the firm’s second investment in the country as part of its dedicated Infrastructure strategy.”</p>
<p>David Luboff, head of Asia Pacific Infrastructure at KKR, said, “We are truly pleased to extend our infrastructure franchise in Asia and India through this investment in a world-class portfolio of fully operational solar energy projects. Given the growing demand across the Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development. Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas.”</p>
<p>According to the press statement, India is a vital part of KKR’s Asia Infrastructure strategy, and this announced transaction is its second investment in the country. KKR has made its investment through its infrastructure fund, the statement added.</p>
<p>Edelweiss Financial Services acted as the exclusive financial advisor to SP Infra while Khaitan &amp; Co. and PwC acted as its legal and tax advisors.</p>
<p>Sanjay Nayar, CEO of KKR India, added, “Given the government’s ambitious target of achieving 175 GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.”</p>
<p>In April 2019, Actis <a href="https://mercomindia.com/actis-acquires-194-mw-solar-assets-shapoorji-pallonji/" target="_blank" rel="noopener noreferrer">acquired</a> 194 MW of operating solar power assets from Shapoorji Pallonji Infrastructure Capital through Sprng Energy, its renewable energy platform in India. Out of the 194 MW, 144 MW capacity is located in Telangana and a 50 MW project in Rajasthan.</p>
<p>According to Mercom’s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener noreferrer">India Solar Project Tracker</a>, Shapoorji Pallonji has 700 MW of solar portfolio. Of this, nearly 300 MW is in operation, and 400 MW capacity is currently under development.</p>
<p>&nbsp;</p>
<p>Image credit: Renew Power</p>


Investment Firm KKR to Acquire 317 MW of Solar Assets from Shapoorji Pallonji

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