Tata Power chief sees boost for Indian solar industry from govt initiatives

Praveer Sinha

Tata Power Co. Ltd chief executive Praveer Sinha expects the government's proposed launch of a quality certification programme for solar cells, the Approved List of Models and Manufacturers (ALMM), by 2026 to support domestic solar cell makers despite a global supply glut in solar equipment.

TP Solar Ltd, a unit of Tata Power Renewable Energy Ltd (TPREL), has recently started production of solar cells at its Tamil Nadu plant.

Sinha told Moneycontrol in an interview that global oversupply amid rising solar manufacturing capacity would not impact the company’s business as the government, similar to solar modules, plans to bring the ALMM for solar cells as well.

The ALMM, which is currently limited to solar modules, is a list of models and manufacturers of solar photovoltaic (PV) modules approved by the MNRE.

“In our country, the solar module cannot be imported from China or any other country because of the ALMM restriction. So, even if there is an overcapacity somewhere, you cannot import. Similarly, currently manufacturing capacity of solar cells in the country is very less, which is now getting ramped up. In the next two years, the capacity would be enough to meet the domestic demand and by then the government plans to introduce ALMM for solar cells as well. Because of ALMM restrictions, people will have to buy India-made solar cells and modules,” Sinha, who is also the managing director of Tata Power, said.

The global market has witnessed an oversupply of solar components amid rising manufacturing capacity leading to stockpiling of imported Chinese modules in Europe and the US.

To support domestic production, the government is considering  including solar cells in the ALMM.

At Tata Power’s Tamil Nadu facility, solar cell production is currently at 2GW capacity. Sinha said the plant is expected run at full capacity adding another 2GW over the next 4-6 weeks.

The Indian government has been pushing companies to set up manufacturing facilities to reduce reliance on imports and grab the opportunity in the green energy sector.

“The government has supported Indian industry to setup manufacturing capability in the solar sector. The policies ensure that people buy local made components,” said Sinha.
India aims to achieve 500 GW of installed non-fossil fuel power generation capacity by 2030 as the country moves towards its net-zero emissions goals.

Mundra power plant

Tata Power is in talks with the government regarding the power tariff for its Mundra Ultra Mega Power Project (UMPP) and expects a resolution soon, said Sinha on the sidelines of the RE-Invest meet in Gandhinagar. He, however, did not elaborate on the expected timeline for the resolution.

“Mundra has been working under Section 11 and it will continue until October 15. We expect for it to be extended further. We are in talks with the government,” said Sinha.

Tata Power’s Mundra facility in Gujarat had stopped its operations after a hike in the price of its imported coal, which made the power purchase agreements (PPAs) it had with five states unviable. The company has been in talks with these states to revise them and agree on supplementary PPAs.

Since February 2023, the plant has been running after a mandate by the Indian government under Section 11 of the Electricity Act, 2003 to meet the country's soaring power demand.

Sinha had told Moneycontrol in February that the company had expected a long-term resolution by June this year but that had not happened.