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RIYADH: Solar equipment production in India will receive grants worth 195 billion rupees ($2.6 billion) from the government.
The announcement came as the country’s budget was set out, and sits alongside other plans to support domestic production of solar cells.
These include a 40 percent tax on solar module imports and a 25 percent tax on cell imports, both of which are to be imposed as of the next fiscal year, Bloomberg reported.
The South Asian country has made it its objective to increase renewable power generation by over 300 percent to reach 450GW by 2030.
This falls in line with the country’s goal of achieving carbon neutrality by 2070.
Homegrown corporations such as Reliance Industries Ltd. and Adani Group have already added solar equipment production lines to their businesses.
The initiatives to ramp up domestic solar equipment production will help the country be less dependent on imports from China.
“With such ambitious targets in mind, one can’t continue to depend on imports and remain exposed to supply chain risks,” said Rupesh Sankhe, vice president at full service investment bank Elara Capital India Pvt. in Mumbai, according to Bloomberg.