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 ?

Option (D) is correct because India has negligible domestic manufacturing capacity for silicon wafers, relying almost entirely on imports, and solar tariffs are determined by the Central/State Electricity Regulatory Commissions (CERC/SERC) or through competitive bidding rather than by the Solar Energy Corporation of India (SECI). Option (B) is the most tempting wrong choice because SECI acts as the nodal agency for conducting solar auctions, which leads many to incorrectly assume it has the regulatory authority to set tariffs. The core concept being tested is the institutional framework of India’s renewable energy sector and the specific gaps in its solar manufacturing supply chain.