Pralhad Joshi also said that so far about, Rs 50,000 crore has been invested in the country's solar equipment manufacturing sector.
Trump's 26 percent reciprocal tariff will immediately slow down Indian solar exports to the US, but it will make the sector more globally competitive while also affording the opportunity to explore other global markets. The government will need to address fears of dumping by the Chinese manufacturers.
Ministry of New and Renewable Energy has ordered that only black wafer, which is the base material for making a solar cell, is allowed to be imported into India. Government wants the process of turning it into a blue wafer to be carried out in India.
The funds will be used by the company to fund its capex plans, which will see the company expand its manufacturing capability beyond just solar cells and become an integrated player manufacturing cells, wafers as well as modules
The Ministry of New and Renewable Energy has stated that solar cells will be included in the approved list of models and manufacturers (ALMM) from June 1, 2026
The supply glut in China has driven down module prices globally, improving the cost economics for Indian developers who saw the average cost of large-scale solar projects going down by 25 percent in the second quarter of 2024, according to data from market research firm Mercom.
CEO Amit Paithankar advocated launching ALMM for solar cells at the earliest, saying similar to solar modules, it would help in developing cell manufacturing ecosystem in the country. Approved List of Models and Manufacturers (ALMM), which is currently limited to solar modules, is a list of models and manufacturers of solar photovoltaic (PV) modules approved by the Ministry of New and Renewable Energy (MNRE).
Tata Power shares after its subsidiary, TP Solar, commenced commercial production of solar cells at India’s largest solar cell plant in Tirunelveli, Tamil Nadu, boosting domestic solar manufacturing capacity.
Prices of solar wafers have halved from the year ago period
The fall in imports is notable in electronic items where the PLI (production linked incentive) scheme is operational, the report by Global Trade Research Initiative (GTRI) said.
The contract is for setting up 39.6 GW solar photovoltaic module manufacturing capacities under the second tranche of the PLI scheme of the government
The plan will be implemented through a joint venture company in partnership with Websol Energy Systems
''Amp Energy India... has announced a joint venture (JV) with Websol Energy Systems Ltd for manufacturing and production of up to 1.2 GW monocrystalline PERC solar cells and modules,'' a company statement said.
Import of Chinese electronics items including mobile phones have risen in 2020-21 despite higher duties and incentives for local manufacture, but they are still lower than imports in 2018-19 and the preceding two years
Asmita Pant, Senior Analyst at Ind-Ra, said, "The increase in tariffs will increase power purchase costs for solar off-takers by Rs 9 billion (Rs 900 crore) annually, considering that around 10 GW of solar capacity will come on stream in the next 12 months.”
India wants to ramp up its renewable capacity to 175 gigawatts by 2022 and 450 GW by 2030, from about 93 GW currently, as part of its commitment under the Paris climate accords.
The move followed recommendation by the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) for continued imposition of the duty for one more year.
Local players keen on manufacturing; big challenge is to produce competitive products
Power and New & Renewable Energy Minister R K Singh on Thursday said his ministry has proposed to impose basic custom duty (BCD) from August 1, this year on solar equipment, including cells, modules and inverters, in the range of 15-20 percent in the first year, which would eventually increase up to 40 percent.
India does not currently levy a customs duty on imports of solar cells and modules, but has a safeguard duty to protect its local industry which expires in July.
Last month, India had imposed safeguard duty on solar cells imports from China and Malaysia for two years to protect domestic players from steep rise in inbound shipments. The duty was imposed following recommendations by the Directorate General of Trade Remedies (DGTR) under the commerce ministry.
Falling prices of solar cells and modules, over 90 percent of which India imports from China, have triggered a decline in the cost of solar power generation and led Indians increasingly to adopt the technology.
"India's preliminary safeguard on imported solar cells drew criticisms from the EU and Japan, which criticized the conduct of the investigation and the initial findings," a Geneva-based trade official said.
The presidential action has been taken to protect the domestic American market that is being badly hit by large scale import of washing machines and solar cells mainly from China, the US Trade Representative (USTR) said.
"It is expected that the manufacturing capacity for cells and modules will increase roughly by 2,500 MW and 5,000 MW per annum, respectively. This is expected to create 25,000 jobs in manufacturing sector and bring in investment of about Rs 30,000 crore," said an official in the New and Renewable Energy Ministry.