The Ministry of Power will launch a domestic manufacturing programme for critical power and renewable energy equipment at an outlay of Rs 1,500 crore in FY22.
The scheme titled ‘Manufacturing Zones under Atmanirbhar Bharat Package’ in the Union Budget will entail setting up three manufacturing zones in a year.
These zones are divided into three categories – coastal, land-locked and hilly states. The scheme will call for offers from states to submit applications to set up these zones. The three selected zones would get Rs 500 crore each for development of manufacturing hubs.
The selection criteria will be based on land, cheap infrastructure facilities such as electricity, water, sewage treatment, etc. The Centre will provide common infrastructure and testing facilities at these zones.
The equipment testing facility will be set up by the Central Power Research Institute (CPRI) for power equipment, and for renewable equipment, the National Institute of Solar Energy (NISE) and the National Institute of Wind Energy (NIWE) will set up testing.
The Centre is also planning to give open access power supply to these zones in case the selected states are unable to supply cheaper electricity.
The states will form a SPV which will be transferred to private companies when they set up manufacturing facilities. The focus will remain on equipment which is manufactured in India, but is still imported.
