Another PLI scheme hits the Chinese wall, as India now mulls extension for projects under solar module incentive scheme

The ₹19,500 crore scheme for fully and partially integrated solar PV module manufacturing has scheduled commissioning dates from October 2024 to April 2026.

Data from the ministry of new and renewable energy showed that around 17.5 GW of module manufacturing capacity had been completed by First Solar, Avaada, Grew, Tata Power Solar and Indosol, out of the awarded 48.3 GW awarded to several companies. 

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Of the 44.9 GW cell manufacturing capacity awarded to several companies, only 6 GW has been completed by Tata Power Solar and ReNew. 

In terms of ingot and wafer manufacturing, only 2 GW capacity has been completed by Adani Group, out of the overall 37.5 GW awarded capacity.

“A key reason of the delay has been lack in supply of components and technology transfer from China, and also the curb on travel of technicians from there,” said an industry executive on the condition of anonymity.

The ministry of new and renewable energy (MNRE) is in talks with the finance ministry for extension of the deadline after the industry reached out to the government with a similar request. 

“The extension may be given on a case-by-case basis and wherever the issues pertain to supply chain constraints. The talks are underway between MNRE and finance ministry and a final decision is yet to be taken,” said one of the two people mentioned above.

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Industry players in the past few months have also reached out to the ministry of external affairs (MEA) to relax visa restrictions for technicians which have also impacted the project implementation. But so far the issue has not been resolved amid national security concerns, added the industry executive mentioned above.

“The MEA has also been given some specific names of required technicians who need to travel, but approvals have not come yet,” the executive said.

Queries mailed to the MNRE, MEA, Adani Group, Avaada Group, Reliance Industries and Indosol remained unanswered till press time.

Another executive with a module manufacturer under the PLI scheme said: “India currently remains entirely dependent on imports for equipment and critical materials for module manufacturing and is vulnerable to global supply chain disruptions and price fluctuations. Also, travel restrictions linked to engineering and equipment adversely impacted execution planning leading to further delays. Since most of the critical materials are made to order, any delays in placing orders will push the delivery timelines further.”

The executive added that current global tariff and trade dynamics have affected supply chains and led to uncertainty in placing orders for equipment leading to delays to timelines.

However, Amit Paithankar, whole-time director and chief executive officer, Waaree Energies Ltd, said: “Our PLI-supported project is on track. Various stages of the project—including engineering and procurement—are progressing as planned. While there were some initial delays due to supply chain constraints and the availability of trained manpower (both within India and internationally), these issues have now been addressed and the project is moving forward smoothly.”

Solar component manufacturing has been a key focus area for the government as India aims to reduce import dependence from China. Although in the past few years India has significantly grown its module and other component manufacturing, the lack of supplies of sub-components and technical assistance from China has in the past couple of years impacted the domestic manufacturing.

The government has also imposed tariff and non-tariff barriers on solar modules including high basic customs duty and an Approved List of Models and Manufacturers for supply of modules to government-backed projects. 

Further, earlier this year, the MNRE said it will introduce a similar list for solar cells starting June 2026.

In December 2024, the finance ministry imposed a provisional anti-dumping duty on textured, tempered, coated and uncoated solar glass imports from China in the range of $673-677 per tonne and $565 per tonne for imports from Vietnam. Following this the price of solar photovoltaic (PV) modules increased by 10-12%. 

Mint in January wrote that the increase in prices has raised concerns among industry participants over project cost escalations and potential delays.

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Currently, the country has about 80 GW of module manufacturing capacity including those under the PLI scheme, according to MNRE data. India’s cell and wafer manufacturing capacity stands at 25GW and 2GW respectively. The Centre aims to have an installed capacity of 100GW for cells and 40GW for wafers by 2030 and also become an export hub.

Indian manufacturers are also exporting modules, with the US being the largest procurer. As India aims to become a manufacturing hub for renewable energy components, the Centre is also pursuing direct government-to-government engagements with African and West Asian nations to open new markets for Indian green energy firms and solar equipment manufacturers.

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