The Union ministry of new & renewable energy (MNRE) has approved seven more facilities under the “Approved List of Module Manufacturers (ALMM)” taking the total to 39.
The latest list, approved on November 10, 2021, has 39 domestic solar cell/module manufacturers, with an aggregate annual manufacturing capacity of 10,819 mw. [See table at the end of story.]
The newest addition of seven manufacturing facilities (belonging to as many companies) has some prominent names like Vikram Solar (capacity: 972 mw), Pixon Green Energy (355 mw) and Alpex Solar (240 mw). Vikram Solar’s manufacturing facility at Falta SEZ in West Bengal, with an annual manufacturing capacity of 1,050 mw, was already approved in the original list.
It may be noted that approval for inclusion under ALMM is given to a manufacturing facility, and not to the manufacturer, per se. Some companies like Waaree Energies and Vikram Solar have multiple manufacturing facilities, which have received separate approval under ALMM.
There are three manufacturing facilities with annual capacities exceeding 1,000 mw (or 1 GW). These belong to Mundra Solar PV (1,100 mw), Vikram Solar (1,050 mw) and Waaree Energies (1,100 mw). Please see items numbers 1,2 and 17 of the table.
The first set of approvals under the ALMM was done on March 10, 2021, followed by the second on August 14, 2021. The third list of approvals was released on September 29, 2021. The latest approval was given on November 10, 2021.
It may be mentioned that effective April 1, 2022, India will impose a basic customs duty (BCD) of 25 per cent on solar cells and 40 per cent on solar modules. This has been done with a view to encouraging domestic production.
Gujarat tops
Gujarat is home to the highest number of approved solar module facilities, as well as the underlying capacities. Of the 39 approved, 14 facilities with aggregate capacity of 4,590 mw are located in this western state. Other leading states with respect to aggregate approved solar module capacity include West Bengal (1,540 mw), Telangana (1,337 mw) and Karnataka (1,000 mw). The 39 approved facilities, it may be mentioned, are spread across 11 states.
Also read: MNRE Gives Nod To NTPC’s 4,750-MW Solar Park Proposal
Relief in the offing
Several solar power developers have expressed their inability to complete their ongoing projects by March 31, 2022, and fear serious cost escalations when the proposed BCD kicks in on April 1, 2022. Project costs with the new duty structure are expected to escalate by at least 60 per cent, with the new import duty structure. In view of this, the government is likely to announce some relaxations, though there is no formal announcement to this effect.
[Featured photograph (source: Goldi Solar) is for representation only]
