Govt To Reimpose Approved List For Solar Manufacturers From April 1
ALMM was put in abeyance for one year to help domestic project developers take benefit of foreign supplies while domestic manufacturing capacity would build up.
The Approved List of Models and Manufacturers (ALMM) for solar panels will be reimposed from April 1, 2024, a Memorandum from Ministry of New and Renewable Energy said on Feb. 9.
ALMM was put in abeyance for one year to help domestic project developers take benefit of foreign supplies while domestic manufacturing capacity would build up.
Under ALMM panels could only be supplied by those manufacturers who are approved under the list after inspection of manufacturing plants and modules by National Institute of Solar Energy.
In March 2023, ALMM was postponed for one year to help India meet its shortage of domestic solar panel supplies as it tries to meet its 2030 target of 500 GW renewable capacity.
Before ALMM was introduced in 2019, China was the largest supplier of solar panels. More than 85% panels were imported in India from Chinese suppliers. However, after the India-China border confrontation, Indian government shifted focus towards Atmanirbharta and introduced ALMM.
As of date India has not approved any foreign manufacturers in the list. Chinese suppliers made several representations to the government, but first due to Covid and later on other pretext inspection of manufacturing plants in China and other foreign countries could not be undertaken.
Ministry of New & Renewable Energy has as of date approved around 40 GW of manufacturing capacity. However it would take couple of years before these capacities come online.
Meanwhile, India will need 40 GW of annual project capacity to meet its 2030 renewable energy capacity. But domestic capacity was falling short, hence government had to postpone ALMM by one year allowing project developers to import from China.
Exemptions Under ALMM From April 2024
The ALMM that will be reimposed from April 1 will apply to those projects which are sponsored and subsidised by the government.
It will also apply to government or its agencies procuring power for their own consumption or for distribution to people through distribution companies. Further, it will be applicable to rootops and KUSUM Scheme projects which are subsidized
However, commercial and industrial rooftop projects that are not subsidised will be exempted. It won't apply to open access, captive, group captive or third-party sale projects.
Exemption has been provided to all projects that are getting commissioned by March 31, 2024. Even projects in advanced stages of construction or where order for modules were placed before March 31, 2024 and Irrevocable letter of credit was opened before March 31, 2024 will be exempted.
Advantage Domestic Manufacturers
The ALMM reimposition will assist Indian manufacturers who were forced to undertake price cut on account of over supply from China. Also, ALMM along with 40% BCD will help improve penetration of domestic panels across country as compared with imported panels.
Many domestic panel manufacturera were forced to export for higher margins. ALMM will help put a break to that trend.
