This means that the dependendence on China for India's solar imports is bound to continue. The minister recently announced a slew of duties to be levied on them, starting this year.
Presently, the solar cell manufacturing capacity is at 2.5 GW, with another 5 GW under construction. A further 3 GW has been approved, Singh told reporters at a virtual press conference on Friday.
This would mean that imports of solar equipment from China is likely to continue, which currently has an 80% share of the total imports. Singh pegged the total expenditure on renewable energy imports at $2.9 billion.
However, Singh stressed the need for self-reliance in India, saying that goods manufactured in India did not lack quality. "Solar modules are exported from India, so it is not a knock on their quality," the minister said.
2 GW of the 3 GW commissioned solar capacity will be part of Adani Green's Rs. 45,000 crore project, the biggest in the world. As part of the winning bid, Adani will develop a capacity of 8 GW by 2025, and will also establish a further 2 GW of solar cells and modules by 2022.
Last week, Singh told reporters that the government plans to levy a basic custom duty of 15-20% that would rise to 40% in a year's time, to reduce dependence on China. However, he also told the industry that public power-purchase agreements that were signed before August 1 would be reimbursed for the duty they pay, through a "grandfather" clause.
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