India Set To Consider Non-Tariff Barriers On Solar Cell Imports To Boost Domestic Production

New Delhi, Sep 5 (KNN) The Indian government is preparing to impose non-tariff barriers on solar cell imports by potentially including them in the Approved List of Models and Manufacturers (ALMM), a move aimed at curbing Chinese imports and promoting domestic manufacturing in the renewable energy sector.

Union Minister for New and Renewable Energy Pralhad Joshi confirmed on Wednesday that the ministry is actively evaluating the proposal.

The ALMM is a government-endorsed list that currently applies to solar modules eligible for state-backed projects.

Following its application to modules earlier this year, the government is now considering extending it to solar cells.

Speaking to reporters, Joshi stated, "That is in the pipeline, and very shortly, we will take a considered decision."

The plan is part of India's broader strategy to reduce dependency on Chinese imports, which dominate the global solar market, and strengthen its domestic solar equipment industry.

The ALMM, introduced in 2021, had been temporarily suspended due to concerns that it could hinder solar capacity additions.

However, it was reinstated in April 2024, and now only India-made modules and those produced domestically are eligible under the list.

The approved solar module capacity under ALMM is currently around 54 GW.

In recent years, India has introduced several key measures to boost local production, including high import duties on solar modules and cells, the ALMM, and production-linked incentive (PLI) schemes aimed at expanding the solar module ecosystem.

These initiatives are crucial as India targets 500 GW of non-fossil energy capacity by 2030, with 292 GW expected from solar power alone.

To meet this goal, the country will require an annual solar cell and module manufacturing capacity of 25-50 GW, compared to its current solar cell production capacity of just over 6 GW.

Joshi highlighted India's significant progress in renewable energy, noting that the country's installed capacity has surged from 75.52 GW in March 2014 to 203 GW today, marking a 165 per cent increase over the last decade.

"India's progress serves as a model for other countries seeking to transition to a low-carbon economy," Joshi said at an industry event.

The minister also reiterated the government's commitment to expanding renewable energy deployment, enhancing energy efficiency, and fostering innovation across the energy value chain.

He invited global investors and companies in the renewable energy and green hydrogen sectors to explore opportunities in India's rapidly evolving energy landscape.

(KNN Bureau)