“India is currently dependent on solar panel imports to support the solar growth charted by the PM’s vision to achieve 100GW by 2022. Import dependence is largely on account of two critical factors: Capacity inadequacy at the local solar manufacturers to meet 100% demand and high cost of local currency financing. The two factors are inter-related.
New 3.5 ~ 4 Gigawatts of solar installation are expected to come on-stream in 2016. The gap is a definite opportunity for local and overseas companies to “Make in India for India”. Government needs to make provisions for providing competitive rates of financing to attract near and long term investments, necessary for augmenting capacities and addressing technology efficiencies for staying relevant in the market.
Additionally, in-country R&D efforts are needed to keep pace with the manufacturing growth and private entities are challenged in setting up individual R&D centers. The Union budget needs to consider allocating dedicated investment and resources for promoting research and development of solar technologies within the country. This can be through a collaborative set-up between the Indian government, public sector agencies and private sector resources”