Greentech Lead Asia: Farooq Abdullah, minister for New & Renewable Energy, on Monday admitted that Indian solar manufacturers face difficulties in operating their plants to full capacity in the absence of adequate orders.
He says Indian solar module makers face intense cost competition from suppliers of imported cells/modules.
The minister said the launch of the Jawaharlal Nehru National Solar Mission, (JNNSM) in 2010 assisted the domestic manufacturing capacity of SPV cells and modules to increase from about 200 MW to 2000 MW.
One of the important objectives of the JNNSM is to promote domestic manufacturing in solar energy sector and certain domestic content requirements were made mandatory in various schemes of JNNSM Phase-I.
India Government has extended the benefits of excise duty exemption on finished products and of concessional customs duty on raw materials and equipment required for manufacturing, to encourage domestic industry.
Another objective of the JNNSM is to also progressively reduce the cost of solar power. This can be achieved through continuous research as well as through induction of latest, state-of-art technologies. In this regard, besides increased support to research projects, benefits of concessional customs duty is being provided for imports of the finished solar products/equipments also.
Under the JNNSM Phase-I ending 31 March, 2013 a target of  1100 MW grid connected solar power was envisaged. Separate targets for different technologies (solar thermal or solar photovoltaic) were not set. A capacity of 500 MW was later been earmarked for solar thermal power plants and 10 such plants were selected under different schemes
The minister says projects under migration scheme 2 projects of 20 MW aggregate capacity did not get completed within approved schedule and stand cancelled while third project was commissioned at part capacity and the developer has not shown interest in commissioning the balance capacity. The remaining 7 projects under Batch–I still have time for completion till May 2013 (without payment of penalties) and are in various stages of construction.