Why PLI for solar manufacturing units is a bad idea
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- čas přidán 27. 08. 2024
- Finance Minister Nirmala Sitharaman has increased the allocation for the production-linked incentive (PLI) scheme for solar manufacture to Rs 24,000 crore in #Budget2022.
With this move, the government wants to boost the domestic manufacture of solar cells and panels and cut imports. Will this move help India Inc? Or, has India already missed the bus?
M Ramesh, Senior Deputy Editor, The Hindu BusinessLine, explains in this video.
Read the story here: www.thehindubu...
This defeatist attitude of your generation has left india destitute for 70 years. Please let the new people at least try.
Agree from a business standpoint. But what about security?
I don't understand this analysis. When it comes to manufacturing semiconductors and solar, these also have strategic implications for India (and the Quad and the rest of the world). How does it make any sense to only talk about competing on price as the sole axis of relevance? Also, when the full value chain is in India, the money goes to Indians who then spend within India, leading to 2nd and 3rd order benefits for the country. How can these effects not be considered when thinking of incentivization as a policy? "commitments to the world" also don't sound very relevant to us given they're non-binding. strategic autonomy is far more valuable to push for than arbitrary commitments to the world
So best to leave and let them monopolise? This could be said about any sectors in India... that doesn't mean we shouldn't do it. At one point, imported cars were cheaper than home made cars in India. Now, India makes one of the cheapest vehicles in the world...
World's renowned scientists and economists are with news channels..😂
India commitment 500 GW at 2030 ., cost for 500 G W installation = ₹ 15,00,000 crores . Huge amount.
Generation / year - 1,00,000 crores unit .
Cost for producing this unit using coal is 3,00,000 crores per year .
My conclusion- india doing well . India can & will do .
So, what are your options instead of manufacturing it inside the country because it is the fact that in coming days anyway we are going to solar dependent energy sector instead of only coal based energy generation. Also if we are importing these important modules then don't you think that again we are going to be dependent on Chinese although we are very much dependent on them for other things like raw materials for pharmacy (API) etc
He also suggested that catch up hydrogen and non-lithium batteries are the best alternatives as there is no competition from china.
If we can manufacture Solar PV which is below 18 cents per Watt then its fine.
But if its heigher than that, then aur Solar Power Plat project will suffer, because output energy cost will also increase.
The biggest advantage China has on Upstream solar module manufacturing (Raw materials like polysilicon) is their cheap labour (45% of it is from taking advantage of Uygur communities in Xinjiang) and cheap electricity cost (using cheap coal). India also has cheap labour (slightly better ethics) and can work towards cheap electricity (preferably cleaner) so is a perfect competitor for taking advantage of 'China + 1' policy many countries are adopting religiously. Though I agree, India will never reach the level of China in Solar, but a good % can be accreditted from India.
Govt. can increase anti dumping duties if necessary and Borosil Renewables is expanding their production capacity 3 times saying their current output is not enough to meet the local demand for pv cells. So, I don't think we've missed the bus.... We've missed the volvo bus, now we're coming in a local bus XD
Every developed countr.y in the world has a power generation capacity of atleast 2 GW per million population. China added 100 GW of coal power per year between 2005 and 2015. Since then the pace has slowed and China is currently "replacing" its conventionals with renewables plus storage. This is the same story in the West where the new renewable installations are replacement for conventional sources of energy. India is not such a market with Indian installed capacity at around 400 GW which will have to expand to 2800 GW following the empirical 2 GW / million population empirical observation. How fast India can transition into 10, 15, 20 trillion $ economy is dependent on the rate at which new capacity can be deployed.
India needs to ramp up its own capacity to around 100 GW / year ASAP to reach the pace of power generation demand that the China achieved between 2005-2015. The assumption made in this video that panel prices in China which increased post-pandemic will come down is flawed. There will be a significant demand push for solar panels from "replacement countries" in the Middle East and Europe plus "addition countries" in North Africa, Mexico, Asia, which Chinese manufacturing will not be able to meet on its own.
India is aiming to install at least 200 GW of new capacity over the next 10 years and then have to replace the solar panels that are aged in the installed capacity. It is a cyclic event to replace aged panels add continue to add new capacity for several generations to come until a new disruption come with better efficiency that solar.
A country of india size doesn’t make sense to continue to import solar panels for ever rather than building its own capacity domestically. India would atleast would need 20-40 GW of solar panel manufacturing capacity for several decades to come for domestic consumption excluding export potential.
And Yes, over period economies of scale will benefit.
Self reliance would also ensure to avoid supply chain disruption challenges and to effectively handle situations like sanctions and economic warfare and India could potentially have with China in the coming decades.
India is making a strategic investment and is a must to protect its own interests even at the cost of slight higher production cost. In the grand scheme of things , 10-20% cost overrides can easily be addressed.
This industry Infact have the potential add thousands of jobs and would build a new eco system of manufacturing.
In all means, Indian government have made a right move.
Although the speaker have gone into several interesting details in terms of economics, however the strategic and diplomatic angle was totally ignored.
Sir is it ur own perspective or also of the experts.
Not so much compete on cost as compete on skill. Cost is important, yet loses value without know how.
How do you like start space based mining, refinery and manufacturing without the skill?
India has pretty cheap space costs, driving down costs while increasing capacity is not a bad idea. There is still a demand to refine any ore into usable materials and a good plan to jump start a pilot project of a modular lunar smelter and refinery. Small scale but mass produced is good practice and is likely to have transferrable know how for improving operations here. Use the solar produced plus battery as part of a subsidy of energy cost.
Amazing insight
a sane voice, finally
adani and ambani has come in this production market
But from mid of this year tarrif will increase by 40% in imported solar modules.
😂😂 Kuch bhi bolte ho