Government announces Rs 1,000 cr scheme for power and RE equipment making zones

Government announces Rs 1,000 cr scheme for power and RE equipment making zones

Recently the Expression of Interest criteria have been revised for the scheme to set up manufacturing sector for Electricity and Renewable Energy (RE) equipment.

  • This scheme has been jointly proposed by the Ministry of Power and the Ministry of New and Renewable Energy. Under this scheme, 3 manufacturing sectors for electrical and renewable energy equipment will be set up by the year 2026-27.
  • Out of these, 2 areas will be brownfield in nature on already developed land. 1 Greenfield manufacturing unit will be set up in the coastal region of the country.
  • The objective of the scheme is to set up a facility for the manufacture of critical equipment, components and parts required for the power sector and renewable energy sector.
  • For this private companies will be invited to set up manufacturing sector. These will provide a common test unit and a common infrastructure unit.

Key Provisions of the Scheme

  • The marked place shall be away from the eco-sensitive zone of the protected areas.
  • The state government should mandatorily hold 26% stake in joint ventures with private companies. A Scheme Steering Committee (SSC) and a Project Management Agency (PMA) will be constituted to oversee the scheme.

Importance of Scheme:

  • This will reduce the manufacturing cost.
  • Resources will be utilized properly and the benefits will be higher than the cost.
  • Import dependency will be reduced and domestic production capacity will be boosted.
  • The country’s trade deficit will be reduced.

Source – The Hindu

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