Jaipur: Rajasthan’s renewable energy ambitions face a setback as solar panel manufacturers are increasingly choosing other states over the desert state. Industry leaders said delayed recognition and complex incentive policies have driven companies to expand in Gujarat, Madhya Pradesh, Punjab, Telangana and Odisha.
After years of lobbying, the finance department finally acknowledged solar panel production as a manufacturing activity under the Rajasthan Investment Promotion Scheme, 2024. But industry executives said the definition remains overly complicated, making fiscal benefits difficult to access. They said unless the policy is simplified, Rajasthan risks losing further investment in a sector central to its clean energy goals.
Major firms such as ACME, ReNew, GREW Energy and Insolation Energy have already bypassed Rajasthan for new projects. “Initially, some companies invested because Rajasthan was a large market. But now, new units are being set up elsewhere,” said an industry executive.
Promoters said the state’s definition of solar manufacturing diverges from central norms, creating confusion. “Earlier, Rajasthan did not recognise solar panel production as manufacturing, depriving the state of at least Rs 10,000 crore in investments. Now recognition has come, but in a way that complicates compliance,” said a company promoter.
Industry players said that without component manufacturing, solar remains a “jobless industry.” While Bhadla Solar Park attracted investments of Rs 10,000 crore, it employs barely 100 people. Manufacturing, they said, could have complemented generation projects and created thousands of jobs. Executives said the finance department’s policy missteps have “almost killed” Rajasthan’s solar manufacturing prospects, leaving the state vulnerable to losing its competitive edge in the renewable energy sector.
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