Consider the following statements regarding India's solar PV module industry:
- The Approved List of Model Manufacturers (ALMM) mandates the use of only domestically manufactured solar modules in all solar projects in India.
- The Production Linked Incentive (PLI) scheme aims to boost domestic manufacturing of solar PV modules by providing financial incentives to manufacturers.
- The Basic Customs Duty (BCD) on solar module imports is intended to protect domestic manufacturers from cheaper imports.
- Market concentration in the solar PV module industry, with a few manufacturers controlling a significant share of the market, can lead to increased competition and lower prices for consumers.
Which of the statements given above are correct?
Explanation:
Statement 1 is incorrect because the ALMM mandates the use of domestically manufactured solar modules only in government-assisted or associated solar projects, not in all solar projects in India.
Statement 2 is correct as the PLI scheme does aim to boost domestic manufacturing of solar PV modules by providing financial incentives.
Statement 3 is correct because the BCD on solar module imports is intended to make imported modules more expensive, thereby protecting domestic manufacturers.
Statement 4 is incorrect because market concentration, where a few manufacturers control a significant share of the market, can lead to reduced competition and potentially higher prices for consumers.
Explanation:
Statement 1 is incorrect because the ALMM mandates the use of domestically manufactured solar modules only in government-assisted or associated solar projects, not in all solar projects in India.
Statement 2 is correct as the PLI scheme does aim to boost domestic manufacturing of solar PV modules by providing financial incentives.
Statement 3 is correct because the BCD on solar module imports is intended to make imported modules more expensive, thereby protecting domestic manufacturers.
Statement 4 is incorrect because market concentration, where a few manufacturers control a significant share of the market, can lead to reduced competition and potentially higher prices for consumers.
