Daijiworld Media Network - New Delhi
New Delhi, Oct 25: India needs to incentivise domestic solar equipment manufacturing to prevent potential supply shortages amid China's proposed restrictions on exports of key technologies used in photovoltaic (PV) module production, a senior industry executive has said.
China has proposed restricting exports of 12 key technologies used in solar equipment manufacturing, citing the need for closer monitoring as these technologies also have applications in aerospace, defence and other sensitive sectors.
Chetan Shah, chairman and managing director of Solex Energy, said China controls an estimated 75 to 90 per cent of the global solar supply chain. He warned that delays in expanding India's domestic solar cell manufacturing capacity could lead to module shortages, project delays and upward pressure on tariffs.
As of June 2026, India had approximately 262 GW of solar module manufacturing capacity, compared with around 37 GW of solar cell capacity. The country's ingot-wafer manufacturing capacity was estimated at just 2 GW, while it had no polysilicon manufacturing capacity, Shah said.
Speaking on the sidelines of the Renewable Energy India (REI) Expo 2026 in Greater Noida, Shah urged the government to extend the implementation timeline for ALMM-II by at least 12 months and include all types of solar projects under the order.
The Approved List of Models and Manufacturers (ALMM) framework aims to support domestic manufacturing by requiring eligible solar projects to source equipment from approved manufacturers. Shah said extending the timeline would give Indian manufacturers more time to fulfil existing orders while establishing additional cell manufacturing capacity.
He described the ALMM framework as an encouraging step towards promoting the government's Make in India initiative.
Shah also called for India to strengthen engagement with countries such as the United States and members of the European Union to secure alternative sources of solar equipment and technology, reducing the industry's dependence on China.
He proposed a dedicated mission to promote domestic manufacturing of critical photovoltaic equipment, spare parts and consumables through production-linked incentives (PLI) or capital subsidies. Such an initiative, he said, should involve Indian capital-goods manufacturers, CSIR laboratories and Indian Institutes of Technology (IITs).
The industry executive also advocated government-to-government technology partnerships with the US, EU, Japan, South Korea and Taiwan to help India access alternative equipment and manufacturing processes.
At the same time, he urged the government to engage diplomatically with China to ensure that orders already contracted and under execution were protected from any proposed export restrictions.
Shah said the industry was preparing to establish new solar cell manufacturing lines, but China's proposal had created uncertainty. He also highlighted the substantial gap between India's module and cell manufacturing capacities.
He added that much of the installed capacity was based on older monocrystalline passivated emitter and rear cell (Mono PERC) technology, while several manufacturing facilities were not operational.