Lok Sabha Question No. 1507 (UNSTARRED), answered on 2024-12-04
Subject: ALMM for Solar Modules
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Arvind Ganpat Sawant, Smt. Bharti Pardhi, Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 1507

ANSWERED ON 04/12/2024

## ALMM FOR SOLAR MODULES

1507. SHRI ARVIND GANPAT SAWANT SMT. BHARTI PARDHI SHRI SHRIRANG APPA CHANDU BARNE

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether proper implementation of Approved List of Models and Manufacturers (ALMM) for solar modules has faced several challenges during the last few years;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Government proposes to bring out a policy similar to the ALMM for solar modules for solar cells to ensure better quality of these items;
- (d) if so, the time by which the final decision is likely to be taken in this regard;
- (e) the steps taken by the Government to provide a boost to domestic manufacturing;
- (f) whether there is a need to provide platform for India's growing energy sector especially in the segment of energy storage; and
- (g) if so, the steps taken by the Government in this regard?

## ANSWER THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER

## (SHRI SHRIPAD YESSO NAIK)

(a) & (b) Approved List of Models & Manufacturers (ALMM) for Solar PV Modules was first issued on 10.03.2021.  As per the extant provisions regarding ALMM for solar PV modules, only the models and manufacturers included in ALMM List for solar PV modules, are eligible for  use  in  Government  Projects/  Government assisted Projects/  Projects  under  Government Schemes  &  Programmes/  Open  Access  /  Net-Metering  Projects,  installed  in  the  country, including projects set up for sale of electricity to Government under the Guidelines issued by Central Government under section 63 of Electricity Act, 2003 and amendment thereof, unless such projects are exempted from ALMM through some order / instruction issued by Ministry of New & Renewable Energy. Vide MNRE's O.M. dated 10.03.2023, the ALMM List for solar PV modules was held in abeyance for one financial year (2023-24) but has come into effect from 1 st April 2024.

- (c) & (d) Yes. A draft amendment to ALMM Order for implementation of ALMM (Approved List  of  Models  &  Manufacturers)  for  Solar  PV  Cells,  was  issued  by  Ministry  of  New  & Renewable Energy (MNRE) on 07.09.2024 and comments were invited from the stakeholders till 21.10.2024. The matter is under examination in MNRE.
- (e): The Ministry of New and Renewable Energy (MNRE), Government of India, has been consistently bringing out policies to boost domestic manufacturing of solar PV modules and other  renewable  energy  equipments.  Various  initiatives  taken,  inter-alia,  include  those mentioned at Annexure-I .

(f)  & (g)  Central Electricity Authority (CEA), has estimated energy storage requirement of 336.40 GWh by the year 2030 which includes 208.25 GW from Battery Energy Storage System (BESS) and 128.15 GWh from Pumped Storage Projects (PSP).

The Government has taken various steps to promote the energy storage in the country, which inter-alia include:

(i).  Ministry of Heavy Industries (MHI), in June, 2021 launched Production Linked Incentive (PLI) scheme for the manufacturing of Advanced Chemistry Cells (ACC) Batteries of 50 GWh capacity annually. Out of total capacity, 10 GWh has been earmarked for grid scale stationary storage applications.

(ii). Ministry of Power in 2022 issued the Renewable Purchase Obligation (RPO) and Energy Storage Obligation (ESO) trajectory till 2029-30. The ESO of obligated entities shall gradually increase from 1.0% in FY 2023-24 to 4% by FY 2029-30.

(iii).  Waiver of ISTS Charges for a period of 25 years for Hydro PSP and for a period of 12 years for BESS, subject to specified conditions.

- (iv).  'National Framework for promoting Energy Storage Systems' for the development and deployment of technology agnostic Energy Storage Systems in the country has been issued.

(v).  The Union Cabinet has approved Viability Gap Funding (VGF) scheme for development of 4,000 MWh of BESS projects by 2030-31, with a financial support of up to 40% of the capital cost as budgetary support in the form of VGF.

- (vi).    Ministry  of  Power,  in  2023,  has  issued  guidelines  to  promote  development  of  Pumped Storage Projects (PSP).

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## Annexure referred to in reply of part (e) of the Lok Sabha Unstarred Question No. 1507 for 04.12.2024 regarding 'ALMM for Solar Modules'

Initiatives  taken  to  increase  domestic  production  of  solar  PV  modules  and  other renewable energy equipment., inter-alia, include:

(i) Production  Linked Incentive (PLI)  Scheme: The Government  of India is implementing the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore. The Scheme is being implemented in two tranches. Tranche-I has an outlay of Rs. 4,500 crore, under which Letters of Award have been issued for setting up of 8,737 MW of fully integrated solar PV module manufacturing units. For Tranche-II with an outlay of Rs. 19,500 crore, Letters of Award have been issued for setting up of 39,600 MW of fully/ partially integrated solar PV module manufacturing units.

(ii) Domestic Content Requirement (DCR): Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya Ghar: Muft Bijli Yojana, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.

(iii)  Preference  to  'Make  in  India'  in  Public  Procurement: In  accordance  with Department for Promotion of Industry and Internal Trade (DPIIT) 'Public Procurement (Preference to Make in India), Order', MNRE had notified Purchase Preference (linked with local content) for RE sector which, inter-alia, identified list of all goods and services or  works  in  respect  of  which  there  is  sufficient  local  capacity  and  competition,  and mandated  that  only  'Class-I  local  supplier'  shall  be  eligible  to  bid  for  the  above goods/services/works with the mandate that minimum local content should be at least 50%.

(iv) Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and modules, with effect from 01.04.2022.

(v) Discontinuation of Customs Duty Concessions: MNRE has discontinued issuance of  Customs  Duty  Concession  Certificates  for  import  of  material  /equipment  for  initial setting up of solar PV power projects with effect from 02.02.2021.

(vi) Domestic Manufacturing in Wind Sector : MNRE has also put in place a procedure to  enlist  type  and  quality  certified  wind  turbines  under  'Revised  List  of  Models  & Manufacturers' (RLMM). It also mandates that Hub and Nacelle assembly / manufacturing facility  shall  be  in  India.  Around  31  different  models  of  wind  turbines  are  being manufactured in India by 14 different companies.  The current annual production capacity of wind turbines in the country is around 18,000 MW.

(vii) Renewable Energy Research and Technology Development Programme (RERTD) :  Ministry of New and Renewable Energy is implementing a 'Renewable Energy Research  and  Technology  Development  Programme  (RE-RTD)'  through  various research institutions and industry to develop indigenous technologies and manufacturing for widespread applications of new and renewable energy in efficient and cost-effective manner.  The  objective  of  the  scheme  is  to  support  the  R&D  projects  for  technology development and demonstration in various areas of new and renewable energy such as solar  photovoltaic  systems,  biogas  systems,  waste  to  energy  systems,  wind  energy systems, hybrid systems, storage systems, hydrogen and fuels cells, geothermal, etc. with the ultimate aim of increasing share of renewables in the energy mix in the country. It provides up to 100% financial support to government/non-profit research organizations and up to 70% to industry, startups, private institutes, entrepreneurs, and manufacturing units.