India adds more domestic manufacturers in ALMM list for solar projects

Prospero 2 Solar Project

India’s ministry of new and renewable energy (MNRE) has updated the approved list of models and domestic manufacturers (ALMM) to include an additional 505 mega-watt (MW) of module capacity.

All solar projects bid after April 10 under Central government schemes will have to use equipment from ALMM listed entities. The list currently includes only names of module-makers with manufacturing base in the country. The total ALMM module making capacity currently stands at 8,872 MW with the latest addition.

Renewable energy companies which were included in the latest update include Gautam Solar (110 MW), Insolation Energy (100 MW) and Pennar Industries (75 MW). The revised ALMM list August had added Jakson Engineers (80 MW), Patanjali Renewable Energy (70 MW) and Central Electronics (35 MW).

The aim of ALMM is to promote domestic manufacturing and reduce import dependency of the sector, Financial Express reported.

The first ALMM list, released in March included players such as Waaree (2,000 MW), Adani’s Mundra Solar (1,100 MW), Vikram Solar (970 MW), RenewSys India (750 MW), Emmvee Photovoltaic (500 MW), Goldi Solar (500 MW), Premier Energies (482 MW) and Tata Power Solar (300 MW).

India has recently floated a Rs 4,500 crore production-linked incentive scheme for solar module and cell manufacturing, which aims to add 10,000 MW capacity of integrated solar manufacturing plants.

India government has received applications for setting up 54,809 MW manufacturing capacity under the scheme from 19 companies including Reliance Industries, Adani, ReNew Power, L&T, Tata Power, Acme Solar, Vikram Solar and state-run Coal India, media reports said.

Solar module and cell imports will attract a BCD of 40 percent and 25 percent, respectively, from the beginning of FY23. Module costs comprise about 60 percent of the total project expenditure for solar plants, and owing to cheaper rates of imported modules, solar capacity addition has majorly been done through foreign products, especially Chinese.

In July 2018, India imposed 25 percent safeguard duty on solar equipment import from China, Malaysia and other developed countries to discourage imports. The duty, as per the plan, gradually came down to 15 percent till the end of its regime on July 31.