India's MNRE Proposes PLI Scheme to Enhance Domestic Polysilicon Production
MNRE explores PLI scheme to boost polysilicon manufacturing in India
Business Standard
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The Ministry of New and Renewable Energy (MNRE) is in talks with the finance ministry to introduce a Production Linked Incentive (PLI) scheme aimed at boosting polysilicon manufacturing in India. This initiative seeks to reduce reliance on imported polysilicon, a crucial material for solar panel production, as India aims for self-reliance in solar power equipment.
- 01MNRE is proposing a PLI scheme for polysilicon manufacturing to reduce import dependence.
- 02Polysilicon is essential for producing over 95% of global solar panels.
- 03India currently has 172 GW of module manufacturing capacity and 65 GW of cell capacity.
- 04The global polysilicon market is dominated by Chinese firms, which control over 93% of production.
- 05The initiative aligns with India's goal for a fully integrated solar supply chain.
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The Ministry of New and Renewable Energy (MNRE) is exploring a Production Linked Incentive (PLI) scheme to enhance polysilicon manufacturing in India. Polysilicon, a refined form of silicon, is critical for producing more than 95% of solar panels globally. Currently, India boasts a manufacturing capacity of 172 gigawatts (GW) for solar modules and 65 GW for cells, yet still relies heavily on imports for polysilicon. MNRE Secretary Santosh Kumar Sarangi stated that while India has made strides in solar equipment manufacturing, upstream polysilicon production remains a challenge due to high capital requirements and market concentration, primarily dominated by Chinese firms. The proposed PLI scheme aims to attract investments in this sector, as the existing Advanced List of Models and Manufacturers (ALMM) framework may not be suitable for polysilicon. The MNRE recently introduced ALMM List-III for local manufacturing of ingots and wafers, which will require solar projects to source these components domestically starting June 2028. This move is part of India's broader strategy to establish a self-reliant and integrated solar supply chain.
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The proposed PLI scheme could lead to increased domestic jobs in polysilicon manufacturing and reduce costs associated with importing this critical material for solar panels.
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