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Govt Mulls Solar Cell Inclusion In ALMM To Curb Reliance On Chinese Imports

Updated: Apr 15, 2024 12:31:27pm
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Govt Mulls Solar Cell Inclusion In ALMM To Curb Reliance On Chinese Imports

New Delhi, Apr 15 (KNN) The Indian government is considering expanding its “Approved List of Models and Manufacturers (ALMM)” policy to include solar cells in addition to solar modules, according to government officials.

The move aims to reduce reliance on Chinese imports and promote domestic solar cell manufacturing, reported Mint.

The ALMM currently restricts the use of certain imported solar modules in government-supported projects. By adding cells to the approved list, India hopes to spur investment in local cell production through non-tariff barriers and quality control measures.

“There is consideration for bringing cells under ALMM going ahead,” said one official. “However, the move needs to be planned based on availability of cells. A roadmap will have to be given to the industry.”

India has ramped up domestic module manufacturing to around 37 gigawatts (GW) of capacity through policies like import duties and production-linked incentives. But cell manufacturing lags far behind at just 6 GW, leaving India heavily dependent on imported cells, mainly from China.

Analysts warn that extending ALMM to cells could face challenges due to India's low current cell capacity and reliance on Chinese equipment suppliers. “It would take at least another 24 to 30 months to have the requisite domestic capacity,” said Jatin Arya, Associate Director at CareEdge Advisory.

The proposed cell policy aims to support India's ambitious target of 500 GW of non-fossil power by 2030, including 292 GW from solar. Meeting this goal will require 25-50 GW of annual cell and module manufacturing, officials said.

While a firm roadmap is still being developed, the cell proposal underscores India's drive to localise solar manufacturing and reduce dependence on China across the supply chain.

(KNN Bureau)

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