Listen now | Global Policy Watch: Europe’s War Global policy issues and their implication for India — RSJ There is an energy crisis in Europe. Russia announced this week that it won’t resume supplying gas to Europe via the Nord Stream 1 pipeline until the west lifts the sanctions against Russia over its invasion of Ukraine. Till last year, Russia accounted for about 45 percent of the EU's total gas imports. About a third of it flowed through Nord Stream 1. A few months back Russia halted supply via Nord Stream citing maintenance concerns. Now the gloves are off. The weaponising of energy is complete. That apart you may have heard of this being the hottest summer in Europe in living memory. The rivers have run dry and hydel power generation is at an all-time low. The crisis is real.
While I read the news about the supposed positive policy direction in the Electrnocis industry. Its poor cousin, the solar industry can expect nothing like that. Currently, the Government wants to encourage Make in India and PLI schemes are announced. While the carrots are announced for the industry, the consumers are being shown the stick with BCD of 40% and renewed license raj of ALMM. ALMM regime for the uninitiated is the mandatory approval method by MNRE of all solar modules (not just manufacturer, but every up-gradation/ type of solar modules) Also, no foreign player has been able to get their names in the ALMM list because no physical visit to the international factories by MNRE certifying agency have happened over the last three years. So, the global best are not in the ALMM list, hence out are being pushed out of the Indian market. BCD is 25% on solar cells, which forbids local assembly of modules for the world. BCD if 40% on finished modules which affect customers!! But the irony is because international module manufacturers are not in ALMM, they anyway are not being imported!! It is no surprise that solar solutions costs have gone up by 20% because of this policy intervention, which is borne by the end consumer!
While I read the news about the supposed positive policy direction in the Electrnocis industry. Its poor cousin, the solar industry can expect nothing like that. Currently, the Government wants to encourage Make in India and PLI schemes are announced. While the carrots are announced for the industry, the consumers are being shown the stick with BCD of 40% and renewed license raj of ALMM. ALMM regime for the uninitiated is the mandatory approval method by MNRE of all solar modules (not just manufacturer, but every up-gradation/ type of solar modules) Also, no foreign player has been able to get their names in the ALMM list because no physical visit to the international factories by MNRE certifying agency have happened over the last three years. So, the global best are not in the ALMM list, hence out are being pushed out of the Indian market. BCD is 25% on solar cells, which forbids local assembly of modules for the world. BCD if 40% on finished modules which affect customers!! But the irony is because international module manufacturers are not in ALMM, they anyway are not being imported!! It is no surprise that solar solutions costs have gone up by 20% because of this policy intervention, which is borne by the end consumer!