As the deadline for approved lists of modules and manufacturers approaches, domestic solar panel manufacturers advocate for the reinstatement of the original 2019 supply curb order. The uncertainty regarding the relaxations proposed under the Feb. 9 circular is causing confusion among project developers and domestic manufacturers.

Confusion Over Regulations

The Ministry of New and Renewable Energy suspended the Feb. 9 circular, leaving both developers and manufacturers uncertain about the future. Domestic manufacturers fear extended losses and call for the imposition of the original 2019 order, while developers are concerned about the cost implications.

Challenges Faced by the Government

India aims to achieve 280 GW solar capacity by 2030 but lacks sufficient operational production capacity for solar panels. With only 12 GW of current production capacity and an approved capacity of 20 GW under ALMM, meeting the 2030 target remains a challenge. However, an additional 20 GW of applications are pending approval, which could boost domestic manufacturing capacity once commissioned.

Impact on Investments

The delay in the original form of ALMM restricts investments and offsets India’s Atmanirbharta mission. The influx of cheap Chinese panels due to the suspension of ALMM has led to a loss of market share for domestic manufacturers. However, the reimposition of ALMM could help domestic manufacturers regain market share and improve operating margins, especially with a strong contribution from exports.

In conclusion, finding a balance between developer and domestic manufacturer demands while imposing ALMM from April 1 could be a potential solution beneficial for both parties.

Source：bloombergquint.com