Big opportunity for domestic energy manufacturers

 

Rajasthan offers significant opportunities for indigenous manufacturing and import substitution in energy sector said N.K. Jain, Chairman, FICCI Rajasthan Sub-Committee on MSMEs. Jain was speaking at a webinar that had a healthy participation of around 200 participants. 

Elaborating further he said that Rajasthan is one of the richest states in India for conventional and non-conventional sources of energy generation. India’s ‘Intended Nationally Determined Contribution' (INDC) aims to base 40% of total installed power generation capacity on non-fossil fuel resources by 2030. 

This includes the government’s ambitious target of achieving 175 GW of renewable energy by 2022 which includes 100 GW of solar power and 60 GW of wind power. The government is preparing a 'rent a roof' policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022.

Echoing support to Jain’s views, Vinod Bishnoi, Vice President and Project Head, India Business, Suzlon Energy Ltd. said that in India there are about 7 - 8 states that can generate wind energy. Rajasthan however has an edge over the rest as alternative economic usage of the land having wind potential is limited and hence it is easy to set up wind power plants in the state. 

Rajasthan published an effective energy policy in 2019 which aims to promote wind, hybrid and hybrid with storage energy. The state should encourage captive consumption and third party sale which will provide electricity at economical rates to industries enhancing their competitiveness and bolstering the renewable energy sector. 

Concurring with these views, Sunil Bansal, General Secretary, Rajasthan Solar Association said that solar sector offers tremendous opportunity for domestic manufacturing with varied usage across sectors especially for MSMEs and we should take benefit of this gift of nature to Rajasthan. 

He added that in the coming years Rajasthan has full capabilities to emerge as a manufacturing hub for solar equipment not only for solar energy projects but for many other items such as solar lamps, pumps, dryers, mosquito traps, torches, fans, deep fridges, ventilators, lanterns, traffic lights, solar air conditioners, and so on. He added that certain items should be purchased from MSMEs.

Anandi Lal Vaishnav, Additional Commissioner, Bureau of Investment Promotion, Government of Rajasthan said that Investment Board and One-Stop Shop mechanism of 14 departments would greatly facilitate and boost investors willing to invest in the state. The Rajasthan Investment Promotion Scheme 2019 has given good benefits to the renewable energy manufacturing sector under the policy and in the customized package also as it is under the thrust sector. 

Manish Gupta, Director, Insolation Energy said that industrial infrastructure, connectivity and generation potential in Rajasthan provides immense opportunity for manufacturing and import substitution in the solar sector. He added that about 12 equipments used in a solar power project can be manufactured locally of which 10 can be manufactured by MSMEs with limited capital investment.

Ankit Piplani, Vice President, E&Y said that states need to promote R&D and technological advancements as well as develop advanced skill sets in manufacturing and focus on export competitiveness to leverage this opportunity. 

As solar and wind power become commercially viable then the country can reduce its dependency on imported coal and even nuclear based generation and perhaps by 2022 when India celebrates its 75 years of independence this could become a reality.