Question map
With reference to solar power production in India, consider the following statements : 1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units. 2. The solar power tariffs are determined by the Solar Energy Corporation of India. Which of the statements given above is/are correct ?
Explanation
The correct answer is option D - Neither statement 1 nor 2 is correct.
**Statement 1 is incorrect:** India has emerged as the third-largest solar module manufacturer globally (~3% share), following China (~90% share) and Vietnam (~5% share).[1] The statement claims India is third-largest in silicon wafer manufacturing, but the source clarifies India's position is in solar module manufacturing, not silicon wafer production. Silicon wafers and solar modules are different components in the solar value chain - wafers are upstream components while modules are downstream finished products.
**Statement 2 is incorrect:** Solar power tariffs in India are not directly "determined" or "set" by SECI. The lowest ever solar tariffs in India of Rs.2.44 per unit were registered in reverse auctions carried out by Solar Energy Corporation of India (SECI) in [2]May 2017. SECI conducts reverse auctions where bidders compete, and the market mechanism through competitive bidding determines the tariffs - SECI facilitates the process but doesn't unilaterally set the tariffs. The tariffs emerge from the competitive auction process, not administrative determination by SECI.
Therefore, both statements are incorrect, making option D the right answer.
Sources- [1] https://bsmedia.business-standard.com/_media/bs/data/market-reports/equity-brokertips/2025-09/17581877500.70194600.pdf
- [2] https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1555373
PROVENANCE & STUDY PATTERN
Guest previewThis question is a classic 'Detail Trap'. It lures you with India's general success in Solar (high installed capacity) to fake a specific industrial achievement (wafer manufacturing). It also tests the fundamental administrative distinction between a 'Corporation' (business) and a 'Regulator' (pricing).
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: In the context of solar power production in India, is India the third-largest manufacturer in the world of silicon wafers used in photovoltaic units?
- Statement 2: In the context of solar power production in India, does the Solar Energy Corporation of India (SECI) determine or set solar power tariffs?
States India has only about 3 GW annual solar cell manufacturing capacity while annual demand is ~20 GW and the shortfall is met by imports mainly from China.
A student could infer that large reliance on imports makes it less likely India is a top global manufacturer of wafers and check global producer rankings or compare import volumes.
Outlines the full PV supply chain and notes silicon production and wafer manufacturing are more capitalāintensive than module assembly.
Knowing wafer production is capitalāintensive, a student could assess whether India's industrial capacity and investment (or lack thereof) match the scale needed to be a top-three wafer manufacturer.
Presents the claim as a multipleāchoice item, implying the statement is debatable and requires verification rather than assumed true.
A student could treat this as a prompt to seek corroborating production/ranking data from industry reports or trade statistics to resolve the question.
Gives examples of large domestic solar projects and programs, indicating strong domestic deployment demand which may outstrip local manufacturing.
A student could reason that high domestic deployment plus prior note of import reliance strengthens the case that India may not be a top wafer manufacturer despite large domestic usage.
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