Power minister warns wind energy equipment makers against preferring exports over domestic market
2 min read 25 May 2023, 08:53 PM ISTRaj Kumar Singh said that the government can remove non-tariff barriers such as the revised list of models & manufacturers
PremiumNew Delhi: The union minister for power and new & renewable Raj Kumar Singh on Monday warned wind energy equipment makers against catering to the international market more than meeting the domestic requirement as the Indian renewable energy capacity grows.
Addressing the CII Annual Session 2023, Singh said that the government can remove non-tariff barriers such as the Revised List of Models & Manufacturers (RLMM). The Revised List of Models & Manufacturers is the list of type and quality certified wind turbine models eligible for installation in the country in order to facilitate state nodal agencies, investors, lenders and developers. It is considered as a non-tariff barrier to support domestic equipment makers.
“In wind, my information is that most of the manufacturers are actually exporting all their product. While I say exports are good, I got a suggestion that may be we can mandate that at least 50% of your products have to be sold in India. I am toying with it (the idea) but I don’t really want to do it. I want the capacity to expand. The demand is there and I would urge you (to cater to domestic dmenad)... otherwise what will happen is that we will have to do away with the barriers which we have set up," he said.
“I’ll do away with the LMM for wind energy if this continues. Then people will be able to go out and buy windmills, generators of 6 MW as compared to what we have of about 2 MW here. So that is looming on you all."
In a bid to boost growth of wind power sector in the country, the Ministry of New & Renewable Energy (MNRE) issued guidelines for development of wind power projects in 1995 and the guidelines have been revised from time to time. In tandem with the guidelines, the ministry issues a Revised List of Models and Manufacturers of Wind Turbines (RLMM) for empanelling the list of wind turbines, which is updated periodically.
He also asked the solar equipment makers to not profiteer amid the Centre’s tariff and non-tariff barriers put in place to boost domestic manufacturing.
“We also put up barriers both tariff and non-tariff barriers to make sure that the industry is here. But that does not mean that you will profiteer," he said, adding that solar equipment makers should also avoid supplying most of their produce to international markets at a time when the domestic demand is growing and the renewable energy capacity in the country needs to boosted.
Centre has imposed a steep customs duty on the import of solar modules and cells in a bid to curbs imports, most of them coming from China.
Noting that several projects bid out to renewable energy developers are stuck, the minister said that the government will crack down on developers of power projects, who miss the scheduled commercial date of operation or deadline to complete the project. If a copany fails to meet the deadline for the first time it would be barred for a year from taking part in fresh bids and in case of a second instance of failure it would be barred for five years.
Addressing the CII event, the minister said that by by 2030, 65% of India’s energy capacity will come from non-fossil sources.
