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An MP government proposal has secured ‘in-principle’ approval for setting up of renewable equipment manufacturing zone, with INR 400 crore support from Centre.
The Ministry of Power (MoP) and the Ministry of New and Renewable Energy (MNRE) invited expressions of interest (EoI) to set up manufacturing zones for power and Renewable Energy (RE) equipment in April this year. Proposals were submitted by Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Bihar, Odisha, Tamil Nadu, and Telangana. Beating the eight contenders, Madhya Pradesh Industrial Development Corporation (MPIDC) came out as the successful bidder.
MPIDC will now need to set up a Special Purpose Vehicle (SPV) within a month of receiving in-principle approval, which will be responsible for creation of Common Infrastructure Facility (CIF) and Common Testing Facility (CIF) in the manufacturing zone.
This is an important development, especially as Madhya Pradesh has made considerable progress in terms of building renewable capacity within the state with a strong pipeline for future growth. This is sure to boost jobs and related infrastructure in the state.
The Madhya Pradesh Renewable Energy Policy 2022 has plans of an investment of INR 40 billion by the year 2024 and INR 100 billion by the year 2027 in RE equipment manufacturing.
The Indian power sector has witnessed tremendous growth in the last decade. But India is not self-reliant to meet the domestic demand for power and RE equipment. India’s target of 450 GW of RE capacity presents a huge opportunity, and to make the most of this opportunity, the Ministry of New and Renewable Energy and the Ministry of Power have jointly launched a scheme to establish three ‘Manufacturing Zones’ in India with a total financial outlay of INR 1000 crore.
The current expressions of interest apply to setting up of a brownfield manufacturing zone on a pilot basis with an overall ceiling of INR 400 crore as a grant-in-aid from the central government