Lok Sabha Question No. 5171 (UNSTARRED), answered on 2025-04-02
Subject: Installed Capacity of Domestic Solar PV Manufacturing
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri P P Chaudhary

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 5171

ANSWERED ON 02/04/2025

## INSTALLED CAPACITY OF DOMESTIC SOLAR PV MANUFACTURING

## 5171. SHRI P P CHAUDHARY

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

- (a) the current installed capacity of Solar PV Module manufacturing in India in comparison to other major manufacturing countries such as China, Vietnam and the United States;
- (b) whether any assessment has been conducted regarding India's competitive position in the global solar manufacturing value chain and if so, the details of findings and the gaps identified thereof;
- (c) whether the Government has implemented any specific incentives or policy measures to enhance domestic solar manufacturing capacity and if so, the details thereof; and
- (d) whether any targets have been set for increasing domestic value addition in solar manufacturing and if so, the details thereof and the progress achieved so far?

## ANSWER THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER (SHRI SHRIPAD YESSO NAIK)

- (a) The current installed capacity of solar PV module manufacturing in India, as per the Approved List of Models and Manufacturers (ALMM), issued on 27.03.2025 is around 74 GW. As per the information provided  by  Indian  Solar  Manufacturers  Association,  the  installed  capacities  of  Solar  PV  Module manufacturing in  China,  Vietnam,  and  United States are  around  1000  GW,  around 23.35  GW,  and around 50 GW respectively.
- (b): No, Ministry of New & Renewable Energy has not undertaken any such formal assessment.
- (c): The Government has taken several measures to enhance domestic solar manufacturing capacity, which inter alia include those mentioned at Annexure-I .
- (d): No, the Government has not set any specific targets for increasing domestic value addition in solar manufacturing. However, the Government has taken several steps to increase domestic value addition in solar manufacturing. Under the PLI Scheme for high efficiency solar PV modules, the amount of PLI is  linked  to the  local  content in the  solar  PV  modules  manufactured by the solar PV manufacturers selected  under  the  Scheme.  The  PLI  amount increases  with  increased  local  value  addition,  thereby encouraging manufacturers to source their material domestically. Further, 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.  Additionally,  MNRE  had  notified  Purchase Preference (linked with local content) for RE sector.

These steps, inter-alia, have begun to show encouraging signs, reflected in the growing domestic solar manufacturing capacity. The solar PV module manufacturing capacity, enlisted under ALMM, has risen to around 74 GW, ninefold increase over four years. The solar PV cell manufacturing capacity in the country as per the information provided by the Solar PV Manufacturers Associations, has increased to around  25  GW.  Further,  Ingot  and  Wafer  manufacturing  capacity  of  around  2  GW  has  also  been installed in the country. The aforesaid manufacturing capacity of solar PV cells and modules includes around  3.2  GW  fully  integrated  thin  film  solar  PV  module  manufacturing  capacity,  which  is  not dependent  on  imported  Solar  Cells,  Wafers,  and  Polysilicon,  as  the  manufacturing  process  is  fully integrated and all the major steps involved in the manufacturing process, take place in India.

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## Annexure referred to in reply of part (c) of the Lok Sabha Unstarred Question No. 5171 for 02.04.2025 regarding 'Installed Capacity of Domestic Solar PV Manufacturing'

Initiatives taken to enhance domestic solar manufacturing capacity, 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.  Under  the  scheme, Letters of Award have been issued for setting up of 48,337 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  local  competition  is available 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,  solar  PV modules, and solar glass: The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells, solar PV modules, and solar glass.

(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) Exemption of Custom Duty on capital goods for manufacture of Solar Cells and Modules : The Government has exempted customs duty on import of the goods specified in List 41 of the notification No. 30/2024-Customs dated 23.07.2024, for the manufacture of solar PV cells and modules.