{"id":93554,"date":"2026-03-19T10:21:28","date_gmt":"2026-03-19T04:51:28","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=93554"},"modified":"2026-03-19T14:07:00","modified_gmt":"2026-03-19T08:37:00","slug":"india-tightens-solar-sourcing-norms","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-tightens-solar-sourcing-norms\/","title":{"rendered":"India Tightens Solar Sourcing Norms: How Solar Sourcing Norms Reduce Chinese Imports"},"content":{"rendered":"<h2><b>Solar Sourcing Norm Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government has expanded its <\/span><b>domestic sourcing mandate<\/b><span style=\"font-weight: 400;\"> for solar equipment to include <\/span><b>wafers and ingots<\/b><span style=\"font-weight: 400;\">, effective from June 2028.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This requirement will apply mainly to government-backed, utility-scale, and commercial projects, including schemes like PM Surya Ghar.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Currently, the mandate covers mainly solar PV modules, while other components can still be imported.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, a separate rule mandating domestic solar cells will come into effect from June this year, indicating a gradual push toward full supply chain localisation.<\/span><\/li>\n<\/ul>\n<h2><b>Reducing Import Dependence in Solar Manufacturing<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The extension of domestic sourcing norms to wafers and ingots aims to cut import dependence and strengthen local manufacturing in India\u2019s solar sector.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While India has built strong capacity in solar modules (172 GW) and cells (27.2 GW), <\/span><span style=\"font-weight: 400;\">upstream segments like polysilicon, ingots, and wafers remain underdeveloped<\/span><span style=\"font-weight: 400;\">, with wafer and ingot capacity at only about 2 GW.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wafers are an important step in making solar panels. First, raw material (polysilicon) is turned into ingots, then cut into thin wafers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These wafers are used to make solar cells, which are finally assembled into solar panels. That\u2019s why producing wafers in India is important for reducing dependence on imports.<\/span><\/li>\n<\/ul>\n<h2><b>Domestic Wafer Rollout Norms in Solar Sector<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to a memorandum by the Ministry of New and Renewable Energy (MNRE), a list of domestic wafer manufacturers will be announced only when:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">At least three independent units exist (no common ownership)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Combined capacity reaches 15 GW.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A new Approved List of Models and Manufacturers (ALMM) i.e. ALMM List-III will be created specifically for wafers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manufacturers must also have matching ingot production capacity to qualify.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The framework ensures <\/span><b>end-to-end domestic sourcing<\/b><span style=\"font-weight: 400;\">, strengthening India\u2019s solar manufacturing ecosystem and reducing reliance on imports.<\/span><\/li>\n<\/ul>\n<h3><b>ALMM Framework for Solar Supply Chain<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MNRE\u2019s Approved List of Models and Manufacturers (ALMM) ensures domestic sourcing:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">List-I: Solar modules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">List-II: Solar cells<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">List-III (new): Solar wafers<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cascading Requirement<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Modules must come from List-I manufacturers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cells must come from List-II manufacturers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Wafers used in cells must come from List-III manufacturers<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Transitional Exemptions<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Projects are exempt from domestic wafer sourcing if:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Bid submission is on or before the cut-off date<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cut-off = 7 days after first wafer ALMM list is issued<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Projects with bids or PPAs before the cut-off remain exempt, even if later procurement occurs.<\/span><\/li>\n<\/ul>\n<h3><b>Mandatory Compliance After Cut-Off<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Projects with bids after the cut-off date must ensure:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Modules, cells, and wafers are sourced strictly from ALMM List-I, II, and III<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tender documents must explicitly include these requirements.<\/span><\/li>\n<\/ul>\n<h2><b>Upstream Challenges in India\u2019s Solar Manufacturing<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite growth in solar module manufacturing, upstream segments like polysilicon, ingots, and wafers face challenges.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Key issues include high capital requirements and price competition from cheaper Chinese imports.<\/span><\/li>\n<\/ul>\n<h3><b>Performance of the PLI Scheme<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Production Linked Incentive (PLI) scheme covers both:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Upstream: Polysilicon, ingots, wafers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Downstream: Cells and modules<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Launched in 2021 to build 65 GW annual capacity, with total outlay of \u20b924,000 crore.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, progress has been uneven, with upstream segments lagging behind.<\/span><\/li>\n<\/ul>\n<h3><b>Implementation Gaps and Capacity Achievement<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overall operational capacity reached only 29% of awarded capacity (as of June 2025).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Performance across segments:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Modules: 59% (strong progress)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cells: 22%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Wafers\/Ingot: 10%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Polysilicon: 14%<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Indicates significant execution gaps, especially in upstream manufacturing.<\/span><\/li>\n<\/ul>\n<h3><b>Continued Import Dependence<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India still relies heavily on imports:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Solar cells: $1,641 million<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Wafers: $156 million<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Polysilicon: $0.03 million (FY25)<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Highlights vulnerability in critical supply chain components.<\/span><\/li>\n<\/ul>\n<h3><b>Policy Response and Way Forward<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government is exploring new capital subsidy schemes for wafers and ingots.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Aim is to boost domestic capacity and reduce reliance on imports in upstream segments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While downstream manufacturing is advancing, upstream bottlenecks remain a key hurdle, requiring targeted policy support and investment for full solar supply chain self-reliance.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-solar-sourcing-rules-wafers-ingots-2028-10588895\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.financialexpress.com\/business\/news\/govt-mandates-local-sourcing-of-solar-ingots-wafers-from-2028-to-cut-import-dependence\/4176907\/\" target=\"_blank\" rel=\"nofollow noopener\">FE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Solar sourcing norms in India now include wafers and ingots to reduce Chinese imports and boost domestic manufacturing across the solar supply chain.<\/p>\n","protected":false},"author":18,"featured_media":93612,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,6191,22,59],"class_list":{"0":"post-93554","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-solar-sourcing-norm","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/93554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=93554"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/93554\/revisions"}],"predecessor-version":[{"id":93642,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/93554\/revisions\/93642"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/93612"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=93554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=93554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=93554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}