With reference to solar power production in India, consider the follow

With reference to solar power production in India, consider the following statements :

  • India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
  • The solar power tariffs are determined by the Solar Energy Corporation of India.

Which of the statements given above is/are correct ?

1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC IAS – 2018
Let’s examine the two statements regarding solar power production in India.
Statement 1 is incorrect. India is not the third largest in the world in the manufacture of silicon wafers used in photovoltaic units. The global market for silicon wafers and solar cells is dominated by countries like China, Taiwan, and Malaysia. While India has been increasing its domestic manufacturing capacity through policies like Make in India and Atmanirbhar Bharat, it heavily relies on imports for wafers and cells.
Statement 2 is incorrect. While the Solar Energy Corporation of India (SECI) is a major implementing agency for renewable energy schemes and conducts auctions for solar power projects, resulting in tariff discovery through competitive bidding, it is not the sole authority determining all solar power tariffs in India. Tariffs for state-level projects are determined by state implementing agencies, often through bidding, and regulatory commissions also play a role in approving tariffs or methodologies. So, SECI determines tariffs for the projects it auctions, but not *the* solar power tariffs for the entire country.
India has made significant progress in solar power deployment and is among the top countries in installed solar capacity. However, the manufacturing ecosystem, especially for critical components like wafers and cells, is still developing, with a significant reliance on imports. Tariff determination is a multi-faceted process involving central and state agencies, competitive bidding, and regulatory oversight.