India’s solar equipment manufacturers are grappling with twin challenges technological constraints and an influx of low-cost imports that threaten to derail their progress under the government’s Production Linked Incentive (PLI) scheme.
Sources indicate that eight of the twelve companies participating in the PLI scheme for high-efficiency solar PV modules are unlikely to meet their targets due to the absence of critical technology for polysilicon-based ingots and wafers. This shortfall could leave over ₹16,000 crore of the scheme’s ₹24,000 crore budget underutilized, with ₹21,000 crore potentially redirected toward a third tranche of incentives.
The production of solar wafers and ingots demands expertise across the supply chain, including access to raw materials, specialized technology, and skilled professionals. Given China’s dominance in the sector, industry insiders cite visa delays for Chinese experts as a key hurdle in scaling up domestic manufacturing.
Government sources told that concerns regarding access to polysilicon-based ingot and wafer technology have been raised with the Ministry of External Affairs (MEA) for a diplomatic resolution. They acknowledged that India’s heavy dependence on Chinese suppliers complicates efforts to secure the necessary know-how.
Adding to these challenges, domestic manufacturers are struggling to compete with inexpensive imports. The Indian Solar Manufacturers Association (ISMA) recently urged the Ministry of New and Renewable Energy (MNRE) to impose a safeguard duty on imported polysilicon-based ingots and wafers to boost local production and prevent dumping.
Chetan Shah, Chairman and Managing Director of Solex Limited, highlighted China’s reluctance to transfer technology and the financial strain on Indian manufacturers. “Production ramp-up has been hampered by high capital expenditure and delays in visas for skilled Chinese professionals,” he said, emphasizing the need for stronger local manufacturing policies. “We must take inspiration from the success of India’s mobile phone production sector.”
The PLI scheme for high-efficiency solar PV modules was approved in two phases, with ₹4,500 crore allocated in the first and ₹19,500 crore in the second. So far, a total domestic solar PV module manufacturing capacity of 39,600 MW has been assigned to 11 companies. However, without immediate intervention, India’s solar self-reliance goals could face significant setbacks.