PATH FOR ECONOMIC RECOVERY POST COVID-19
While countries around the world are preparing plans for recovery of economic growth post COVID-19 Pandemic, debate have started to choose the correct economic growth model


The Old Quantitative Economic Growth Model dependent on fossil fuels for energy Or The New Qualitative Economic Growth Model dependent on renewable energy


WORLD SCENARIO
Major countries of the world have shown clear shift from old economic growth model to new economirEgrT•Wth model
European Green Deal must be central
to a resilient recovery after Covid-19
South Korea to implement Green New Deal after ruling party election win


INDIA’S STAND
India has shown real commitment to use clean green renewable energy for economic growth.
India has set itself a target of 175 GW renewable energy capacity by 2022 including ioo GW of solar and 6o GW of wind power capacity.
But solar energy generation and solar equipment manufacturing sector have not received the due importance in Atmanirbhar Bharat Abhiyan


SOLAR POWER SECTOR AND ATMANIRBHAR BHARAT
India has a large potential for generation of solar power. It is a tropical countries with three hundred clear sunny days in an year. Development of solar power sector can help India in achieving self-reliance in following ways 1. Employment generation 2. Rural development 3. Reduction in fuel import bills 4. Reduction in dependency on oil producing countries 5. Faster installation of power generation units 6. Clean environment and enhanced quality of life
RURAL DEVELOPMENT


Demand of Installation of roof-top solar panels will create entrepreneurship and jobs in rural India in solar power sector. Availability of power will promote cottage and small industries in rural India It will also bridge the income disparity between rural India and urban India.
REDUCTION IN FUEL IMPORT BILLS AND DEPENDENCY ON OIL PRODUCING COUNTRIES
India is among fastest growing economies but depends heavily on imports of energy.
This places Indian strategic interests at risk and dampens sustained growth rate. Non-conventional energy sources are the keys. FASTER INSTALLATION OF POWER GENERATION UNITS A 50o MW capacity solar plant can be constructed within 18 months while a similar thermal or hydel plant might take 2-3 times more. Costs of construction and financing for a new solar plant is 14% less that of thermal or hydel plant.

REDUCTION IN FUEL IMPORT BILLS AND DEPENDENCY ON OIL PRODUCING COUNTRIES
Coal (2013- 2014) (2015- 2016)- (2017-2018) (2014-2015) (2016-2017) (2018-2019) Coking coal (36.87) (43.72) (44.56) (41.64) (47.00) (51.84)

Non-coldng coal (129.99) (174.07) (159.39) (149.31) (161.27) (183.40)

Coke (4.17) (3.29) (3.07) (4.35) (4.58) (4.93)

Total coal import (166.86) (217.78) (203.95) (190.95) (208.27) (235.24)


SOLAR POWER SECTOR IN INDIA HEAVILY DEPENDENT ON CHINA
Despite the ambitious target of solar power generation, India has an annual solar cell manufacturing capacity of about 3 GW while the average annual demand is 20GW.


Seven of India’s top io module suppliers are Chinese firms. In the past five years, India has already imported $16 billion worth of solar equipments
Unless indigenous capacity is ramped up, India may import an additional $42 billion of solar equipment by 2030.


HOW TO BECOME ATMANIRBHAR IN SOLAR POWER SECTOR
Solar equipment manufacturing occurs in four phases

1. Semiconductor Ingot production

2. Semiconductor wafer production from ingot

3. Photovoltaic cell manufacturing from semiconductor wafer

4. Solar panel manufacturing by assembling photovoltaic cells To achieve self sufficiency in manufacturing of solar equipment, India needs a new solar sector development policy with focus on following three issues. Development of core competency in semiconductor manufacturing Government policy to subsidize solar manufacturing sector Reduced cost of capital/cheap loans


CORE COMPETENCY IN SEMICONDUCTOR MANUFACTURING
Ingot formation and wafer production fall in semiconductor manufacturing industry

Experts suggest that the human and technical learning curve could be five to io year


GOVERNMENT POLICY
In dedicated policy for development of solar sector government should provide subsidies in following activities
Land Acquisition Raw Material Procurement Labour LawsTax Exports


COST OF CAPITAL
The cost of debt in India (11%) is highest in the Asia-Pacific region, while in China it is about 5%.
How Green Energy can kick start Indian economy