Page 77 - Edelweiss India Conference 2022 FLIPBOOK

New Energy Digital Manufacturing Capital Markets Human Capital

• Manufacturing companies import wafers or cells, mainly from China, and then assemble
them into cells and modules, respectively.

• Nearly 95% of solar equipment used in projects in India is imported from China or
Chinese-origin companies.

To further cut the industry's dependence on China, the Indian government has constituted
a basic customs duty (BCD) on solar imports. It will be charged at 25% for cells and 40% for
modules, and will be applicable from April 2022.

PV solar PLI scheme: Bidders that passed muster

Bidder Capacity Integration Stage
Jindal India Solar 4000 Stage 1 to 4
Reliance New Energy 4000 Stage 1 to 4
Shirdi Solar 4000 Stage 1 to 4

Source: Edelweiss Research
Note: Stage 1: polysilicon; Stage 2: wafer; Stage 3: cell; and Stage 4: Module

An organic shift in manufacturing

India’s manufacturing sector should start coming of age. Its now got some
tailwinds and some successes to fall back on, and – most importantly – its got
the market and a favourable global manufacturing shift, technology, and the

incentives. This is ushering in broad-based expansion, less sector-dependent, and
one that will create ecosystems, rather than individual manufacturing capacities
and players. While a lot has been hoped for in the past, it’s all coming together
now, and its scope lies in the durable shift over an immediate surge.

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