Govt proposes ~1,000-crore scheme to make power, RE equipment

The Centre has proposed a scheme worth ~1,000 crore to invite private companies to set up manufacturing zones for power and renewable energy (RE) equipment.

The move is part of the government's efforts to cut down on import reliance and build domestic capacity. The three proposed zones are proposed to come up by 2026-27.

The ministries of power and new and renewable energy have jointly proposed a scheme for establishment of three manufacturing zones. in which two would be brownfield on already developed land and one greenfield manufacturing zone in a coastal area of the country, said the expression of interest (EOI) published by the ministries.

“India is largely reliant on imports to meet its growing domestic demand of power and renewable energy equipment and this trend is likely to continue unless domestic capacity is ramped up with suitable policy support. The target of 450 Gw of renewable energy capacity offers a tremendous opportunity to create skilled jobs, bring about technology transfer, and contribute to the makein-india campaign, in addition to reducing the country’s trade deficit and reliance on imports,” said the ministry in its EOI.

The proposed funding for the three zones is ~1,000 crore with a ceiling of ~4,000 crore. The power ministry will form a scheme steering committee and a ‘project management agency’ with representation from its different arms, which will shortlist the applications. The scheme aims to establish a manufacturing facility of critical equipment, components and spares required for the power sector and renewable energy sector.