Reliance, Tata Power, others bid for Rs 19,500 cr solar incentives

Solar module makers including Reliance Industries Ltd. and Tata Power Co. are among bidders for Rs 19,500 billion ($2.4 billion) in financial incentives that India is offering to expand domestic manufacturing and curb panel imports from dominant producer China.

Others showing interest include U.S. firm First Solar Inc. and Indian companies JSW Energy Ltd., Avaada Group and ReNew Energy Global Plc, according to people familiar with the matter, who asked not to be named as the information hasn’t been made public. The embattled Adani Group, one of the country’s largest solar panel makers, was not among the bidders, the people said.

The financial assistance is part of Prime Minister Narendra Modi’s aim to turn the nation into a manufacturing powerhouse, creating more jobs in the economy and reducing imports that can drain foreign exchange. His “Make in India” campaign is an effort to showcase the country as an alternative to China amid a global push to diversify supply chains in the wake of the pandemic.

The government is offering grants to take the country’s module-making capacity to as much as 90 gigawatts, enough to meet its own requirements and serve export markets.

Still, the bids come amid concerns that the focus on domestic manufacturing is slowing down renewable power projects, undermining India’s transition targets. Power Minister Raj Kumar Singh said last month that his ministry is considering temporarily “relaxing” a key barrier to module imports to speed up projects.

Spokesmen at Reliance, Avaada Group and JSW Energy declined to comment. The renewables ministry, as well as Adani, Tata Power, ReNew and First Solar, didn’t immediately respond to emailed requests for comment.

The bids, being conducted by state-run Solar Energy Corp., closed Feb. 28, after being extended multiple times. Details on incentives and projects aren’t yet available.