The RBI is considering a proposal to bring the manufacturing of solar panels under priority sector lending by banks as part of the country’s big push to green energy in the fight against climate change.
A senior official confirmed that the proposal discussed with bankers has the backing of the Finance Ministry as the government is keen to make more funds available to boost indigenous production of solar panels and cut imports.
Several discussions have taken place on the issue and a final decision is expected to come through soon.
The Ministry of Renewable Energy has also been pursuing a proposal to make the Production Linked Incentive (PLI) scheme for setting up solar PV module manufacturing capacities more liberal.
Besides, the government has restricted cheap imports of solar panels from China to encourage domestic production. However, there are complaints that some Chinese imports are still flowing in from third countries.
The total domestic capacity for manufacturing solar modules is about 20 GW, of which about 13.3 GW has been enlisted in the Approved List of Models and Manufacturers. The capacity for manufacturing solar cells is around 4 GW.