The Central Government has proposed to set up exclusive manufacturing zones for power and renewable equipment in the country. The government proposes to offer Rs 1,500 crore assistance for setting up three such zones within three years at locations to be decided through online auctions. As per the proposal, states that offer land and power at lowest cost besides other incentives will get to set up the zones. The proposal aims at indigenisation and curbing imports to establish self-sufficiency in power and renewable energy equipment. The states will be required to submit proposals providing a minimum area of 300 acre for setting up the manufacturing zones for renewable and power equipment.
It is reported that the proposals will have to indicate proposed electricity cost, land cost and other incentives including infrastructure facilities for the scheme for establishment of the manufacturing zone. The selected states will have to form special purpose vehicles (SPVs), which will be responsible for setting up the manufacturing unit with common infrastructure and testing facility.