PM KUSUM: MNRE Extends Waiver On Local Content Mandate For Solar Cells

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In its latest notification, the Ministry of New and Renewable Energy (MNRE) has extended the waiver of the Domestic Content Requirement (DCR) for solar cells under the Component C of the PM-KUSUM scheme. 

Earlier, the ministry had issued an official memorandum on August 1, 2022, to extend the waiver till July 20, 2023. In its latest order, the ministry has extended it until March 31, 2024. The ministry said that this was done after receiving several industry representations on the issue.

“The ministry has received various representations regarding extension of DCR waiver for solar cells under Component C (FLS) owing to the ongoing bidding process,” the notification said.

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It also added, “In view of the difficulties faced by the stakeholders and SIAs, it has been decided that the provision of the requirement of indigenous solar cells (DCR) under Component C (FLS) of PM-KUSUM scheme has been relaxed till March 31, 2024.”

The mandate of DCR required using domestically manufactured solar cells and modules. They must also comply with the testing requirements and standards of the Ministry of New and Renewable Energy (MNRE). 

The government claimed that with the mandate of DCR, it has pushed its Make in India mission. The Ministry of New and Renewable Energy (MNRE) has been using the different components of the PM-KUSUM scheme to decarbonize the agricultural sector by infusing more solar energy either by giving more off-grid solar pumps, solarizing agricultural pumps and also ensuring the solarization of feeders.

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Under Component C of the mission, the government has been working towards feeder-level solarization and solarization of existing pumps. The Scheme was expanded in November, 2020 with an increased target of 30,800 MW of solar power capacity. As on 28.02.2023, a total of 89.45 MW capacity has been installed under Component-A and around 2.09 lakh pumps have been reported installed/ solarized under Component-B and Component-C combined. This is equivalent to about 1,140 MW of installed solar capacity.