Govt to act against solar power developers flouting local sourcing norms
₹14,007 crores under the PLI scheme for high efficiency solar PV modules (Tranche-II). By the end of last fiscal, India’s solar module manufacturing capacity stood at 38 GW and the government expects to add 48 GW of manufacturing capacity in next three years. A total integrated capacity of 8.73 MW was allocated under tranche-I of the scheme, in November-December, 2022.
Considering the two tranches together, the total domestic solar PV module manufacturing capacity allocated under the PLI Scheme is 48.33 MW, with a cumulative support of more than ₹18,500 crore by the government, an official statement had said in September. Centre has also announced the imposition of basic customs duty of 40% on import of modules and 25% on that of cells with effect from April last year to discourage imports and boost demand for local products. However, amid lack of local supplies, reliance on imported modules and cells continues.
In response to the supply shortage, the government exempted ongoing solar projects from the mandatory requirement of procuring photovoltaic modules from the Approved List of Models and Manufacturers (ALMM) in March. The projects commissioned by 31 March, 2024 would be exempted from the requirement of procuring modules under ALMM. ALMM mandate was introduced in 2021 as a non-tariff barrier to boost domestic manufacturing, by approving the list of indigenous models and manufacturers who could participate in the solar development projects bid out by the government.
India’s solar cell and module imports rose 55.1% in the April-June quarter of FY24 to $926.6 million. The demand for modules and cells would grow as India aims to reach a cumulative installed solar power capacity of 292 GW by 2030. The current installed
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