Policy and Legal

419.74 MW Installed in February, Renewable Capacity in India at 92.97 GW

MNRE in its monthly summary has detailed that with 419.74 MW installed in February, total renewable energy capacity in India has reached 92.97 GW.

The monthly report detailed that solar made up 39.08 GW of the total, closely followed by wind at 38.79 GW and then 10.31 GW from Bio-power and finally 4.79 GW from small hydro projects. The ministry has revealed that projects of 50.15 GW capacity are at various stages of implementation and that 27.02 GW capacity currently under various stages of bidding.

This is only the second month in India’s renewable energy history when solar capacity has been ahead of wind in the grid, after it took a narrow lead for the very first time in January 2021. Becoming the leading source of renewable energy in India.

The ministry has also revealed that an expenditure of Rs 2565.52 crore has been incurred up to February 28, 2021, which is around 71.44 percent of the total revised estimate for the ministry for the full fiscal of 2020-21.

Recently, the Standing Committee on Energy had presented its ‘Demand for Grants 2021-22’ report for the Ministry of New and Renewable Energy (MNRE) in the parliament. Based on its findings and observations, the parliamentary panel was of the opinion that that variation in budgetary allocations at the stage of revised estimates and low utilisation of even the decreased allocated amounts under various heads are symptomatic of poor financial planning by the Ministry.

In its findings, the committee did observe that the Gross Budgetary Support to the Ministry was substantially decreased at the time of revised estimates. The allocation was reduced by about 26 percent during the year 2019-20 and about 38 percent for 2020-21. However, to its disbelief, it also found that the Ministry had not been able to fully utilise even the decreased allocations during the previous years. It could utilise 86.97 percent, 91.53 percent and 69.78 percent of revised budgetary allocations during the years 2018-19, 201920 and 2020-21 (upto January 2021 - now 71.44 percent upto February 28, 2021) respectively.

Other highlights: •The Ministry vide order dated February 04, 2021, had issued amendments in Specifications and Testing Procedure for Standalone Solar Pumps. •The Ministry of Power vide Gazette Notification dated February 05, 2021, had issued amendments to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-The Clock Power from Grid Connected Renewable Energy Power Projects, complemented with Power from any other source or storage. • The Ministry vide order dated February 09, 2021, issued clarifications regarding

Time Extension in Scheduled

Commissioning Date of Renewable

Energy (RE) Projects considering disruption due to lockdown due to

COVID-19. It has been clarified that further extension beyond 5 months can be granted by implementing agencies in exceptional cases. • The Ministry vide order dated February 25, 2021, has discontinued the benefit of

Concessional Customs Duty in respect of items imported for initial setting up of solar power projects.

MNRE Releases List Of Module Makers for Government Contracts

The ALMM list, to be updated monthly, will be valid for two years. The Ministry of New and Renewable Energy, in an office memorandum released yesterday, announced the names of 23 Indian firms those products would be eligible for use in government contracts for solar plants. The list is for module manufacturers right now. The word "Government" shall include Central Government, State Government, Central Public Sector Enterprises, State Public Sector Enterprises and Central and State Organizations / Autonomous bodies.

The Approved Models & Manufacturers of Solar Photovoltaic Modules (ALMM) order shall be applicable on all such bids whose last date of bid submission is on or after 10.04.2021. With a validity of two years, the government has also promised to update the list on monthly basis, keeping the opportunity open for other manufacturers that qualify in the intervening period. Approvals are done based on inspections by NISE (National Institute of Solar Energy) and a special effort was made to weed out manufacturers that were claiming production of modules done elsewhere, as the ministry puts it. Probably referring to manufacturers adding their own badge to products after importing them or buying them locally from other Indian manufacturers even. The list will be welcomed by industry, as it makes a start on what is likely to be a very crucial upcoming period, as far as government sponsored contracts go. As we have been highlighting, a significant part of growth in the coming years will come from government led initiatives fronted by its PSU's, besides the regular auctions mechanism through SECI and other state governments. Coming a day after clarity on the BCD issue, one hopes that the new wave of purpose will sustain long enough for the industry to find its feet again.

Borosil Renewables To Benefit As Duty on Solar Glass Imports Notified

India's Ministry of Finance has formally notified the levy of a countervailing duty (CVD) on the cost, insurance, and freight (CIF) value on the imports of textured and tempered (whether coated or uncoated) glass from Malaysia. the move follows a recommendation from the country's DGTR (Directorate General of Trade Remedies) in December last year, when it had recommended a 9.71 percent CVD following a complaint by Borosil Renewables Limited. Borosil is the country's biggest glass maker for the solar industry.

It had filed an application before the DGTR for the imposition of countervailing duty on imports of textured toughened (tempered) glass from Malaysia, alleging that the producers of tempered glass in Malaysia had benefitted from subsidies provided at various levels by the government of Malaysia and other public bodies. Interestingly, there has been a global shortage of solar glass for some time now, and Borosil itself has been a big beneficiary, turning around from losses to solid profits recently, and has also see its stock price shoot up. The latest notification from the Ministry of Finance will do much to give strength to the new found levels of the firms stock price. the firm has also announced major capacity expansion plans.

The CVD imposed under the notification would be applicable for five years (unless revoked) from the date of publication in the Official Gazette and would be payable in Indian currency.

The notification states that the duty is applicable if: • The tempered glass has been exported to

India from Malaysia at subsidized prices • The domestic industry has suffered material injury due to the subsidization of tempered glass • The material injury has been caused by the subsidized imports of the tempered glass originating in or exported from

Malaysia.

For the Indian solar manufacturing industry, duties will play a decisive role in terms of survival or profitability, thanks to the high competition from China in general, and Malaysia in this case, for solar glass. Some level of protection has been accepted as necessary to ensure self sufficiency for the country in the sector.

The largest industry grouping, for solar modules, is already looking forward to better times by the end of this year, as the order cycle for modules by then has to take into account the expected hike in Basic customs Duties to 40 percent on them from early next year.

The union budget has already increased the duty on a third vital component, solar inverters, from 5 to 25 percent.

MNRE Issues Amended Draft Policy for Promoting DRE Livelihood Applications

The Ministry of New and Renewable Energy (MNRE) has issued a revised draft of its policy framework for developing and promoting Decentralised Renewable Energy (DRE) livelihood applications. The ministry has invited comments/suggestions from stakeholders on the draft framework with a deadline of March 23, 2021.

The driving force behind the policy framework remains the wave of innovators and entrepreneurs that have come up with a variety of DRE livelihood applications, which are not only energyefficient but also economically viable. These include a myriad of solutions such as solar dryer, solar or biomass powered cold storage/chiller, solar charkha, etc.

The modular design of such DRE livelihood applications ensures scalability without large investments. Besides, the Energy efficiency of such solutions is also important, as it in turn, determines their economic viability by reducing the size of the generation and storage (if required) asset. Thus, the draft policy framework is being proposed to provide a conducive environment for the development and large-scale adoption of these applications.

Need for Renewable Energy Based Livelihoods

DRE-powered livelihood solutions have the potential to reduce and eventually eliminate the reliance of livelihoods on diesel and can supplement the grid supply. There are successful pilots and business models of DRE livelihood applications in agriculture, agroprocessing, dairy, poultry, fisheries, tailoring, etc., which have been tested at the field level by various agencies and have the potential to be replicated in larger quantities. However, this is still only a small fraction of the overall spectrum of livelihood activities throughout India. Against this background, there is a need to: a. Scale-up the currently available DRE livelihood applications b. Support development of new DRE livelihood applications

Scope and Objectives of the Framework

DRE livelihood applications can be defined as applications powered by renewable energy which are used for earning livelihoods directly such as solar dryer, solar mills, etc. The scope may also include DRE applications operating in hybrid mode with grid as long as the system is capable of running standalone in the off-grid mode as well.

Livelihood applications powered by mini/micro-grids would also form part of the scope of this policy, provided such livelihood appliances are energy efficient. The applications with end-use in education and healthcare centres are also eligible under this framework, as these provide livelihoods to teachers/ instructors and healthcare workers.

To promote DRE livelihood applications, the policy would focus on the following objectives: • Enable a market-oriented ecosystem to attract private sector for the development and deployment of DRE based livelihood applications • Unlock easy access to end user finance to increase adoption of DRE-based livelihood solutions by linking DRE to

existing financing schemes or through new innovative financial instruments. • Leverage quality control standards and a strong monitoring and evaluation framework to ensure longterm performance sustainability of

DRE-based livelihood solutions and to assess their impact on different populations including marginalised groups and women. • Promote skill development for strengthening the service infrastructure at the local level • Encourage innovation and R&D to develop efficient and cost-effective

DRE livelihood applications • Collaborate with other ministries to include DRE based livelihoods applications in their programmes • Support creation of livelihood opportunities in technology innovation value chain of DRE applications • Support and incentivise adoption of

DRE livelihood technologies among women and other marginalised sections such as Scheduled Caste and

Scheduled Tribes

Furthermore, in the draft framework the ministry has proposed the following seven steps to be taken up for the promotion of DRE livelihood applications: 1. Assessment of Demand: Assessing the possibilities or potential of deployment of DRE livelihood applications across sectors of the rural economy and across regions. 2. Research & Development and

Standardisation: Innovation, research and development of DRE technologies to offer tailor-made solutions is important for widespread adoption. 3. Pilot and Up-scaling of DRE livelihood applications: Piloting and field demonstration of new DRE livelihood applications is vital to ascertain the success of any technology innovation on the ground. 4. Access to Finance: MNRE will pursue with financial institutions for credit facilitation. 5. Skill Development & Capacity

Building: DRE livelihood applications have the potential of creating new local job opportunities in operations & maintenance and installation/ fabrication. 6. Public Information and Awareness:

Awareness about the appropriate

DRE technologies and related services amongst the relevant stakeholders is required for taking the necessary decisions. 7. VII.Programmes of Various

Ministries/ Departments: It is pertinent to identify and exploit opportunities for DRE livelihood applications under schemes of various Ministries and Department of

Central/State Government.

In the new draft, the ministry has also proposed that schemes of different Ministries/Departments are being implemented by various central /state agencies. The State Nodal Agencies (SNAs) for Renewable Energy having expertise for the RE sector will coordinate with these implementing agencies to provide technical support for DRE livelihood applications.

SNAs may form a State Implementation Cell for DRE based livelihood applications bringing the State Departments engaged in the implementation of such applications on the common platform. MNRE will be discontinuing the benefit of Concessional Custom Duty for items imported for the initial setting up of solar projects

The Ministry of New and Renewable Energy (MNRE) has notified that it will be discontinuing the benefit of Concessional Custom Duty in respect of items imported for the initial setting up of solar power projects.

In a memorandum, the Ministry stated that a new Ministry of Finance customs order has superseded its 2011 customs order and thereby, the ministry is withdrawing the benefit of concessional customs duty on the items imported for the initial setting up of the solar power projects with effect from February 2, 2021.

In compliance with the said Notification, MNRE has stopped the processing of all the applications (submitted to its online portal scms.gov. in) seeking Concessional Customs Duty Certificates in connection with the solar power projects w.e.f. February 2, 2021, i.e. the date on which the new notification from the Ministry of Finance (Revenue Department) came into force. "Consequent upon rescission of the said notification, all the procedures laid down by the Ministry of New and Renewable Energy through its communications issued from time to time in the matter also cease to be operational with effect from 02.02.2021,” MNRE stated.

The ministry has now requested Solar Power Developers to upload the reconciliation reports in respect of CCDCs issued before 02.02.2021, on the portal scms.gov.in within the prescribed time limit after commissioning of the respective projects. Unused CCDCS may be returned in original to this Ministry within fifteen days from the date of issue of this OM.

Earlier in February this year, the MNRE had announced that renewable energy (RE) projects under implementation as on the date of lockdown, i.e. March 25, 2020, through RE Implementing Agencies designated by the MNRE or under various schemes of the ministry can seek to get further extension beyond 5 months if granted by the implementing agencies in exceptional cases.

The ministry has specified that the additional extension for the projects will be granted by the implementing agencies after due diligence and careful consideration of the specific circumstances of the case, and if allowed in terms of the provisions of the relevant contract.

The ministry stated that it had since received requests for further extension beyond 5 months on account of COVID19. After examining the request, the ministry decided that since it has already issued instructions for a blanket extension of 5 months on account of COVID-19 without case-to-case examination and without asking for any documents/evidence.

No Concessional Custom Duty on Imported Items for Initial Setting up of Solar Plants