Setting up new industrial infrastructure for renewable energy in India is a daunting task. How does the government plan to encourage private sector participation in this emerging sector?

High initial costs and risks nature of renewable ventures have led to challenges in increasing industrial infrastructure for renewable energy. It is a daunting task to set this up (1) High capital costs → Cycle financial risk in straining up factories (2) Supply chain risks → Rare earths are monopolized by China but are crucial in manufacturing renewable technology (3) Uncertain demand → Impedes profitability of industrial ventures as low demand will lead to revenue shortfall (4) Inadequate skilling of labour force

leads to slow innovation and progress Govt plans to increase private sector participation (1) Viability gap funding helps bridge initial costs in setting up solar parks and wind farms (2) RPOs ensure baseline demand for power output and promote profitability of ventures (3) National Mineral Minerals Mission will lead to assured supply of raw materials encouraging private partnership (4) Skilling schemes like PM EUV help supply qualified labourforce capable of engaging in industrial entrepreneurship Hence government-backed assurances will help increase private sectorconfidence in industry-building.

— Varun Tokas · AIR 117