New Delhi is in talks to introduce a capital expenditure subsidy scheme for upstream solar photovoltaic manufacturing, focusing on polysilicon, ingot, and wafer production. This aims to address domestic capacity shortfalls and curb import dependence, particularly from China, potentially reshaping the sector's future.
THE SEAMLESS LINK
India's burgeoning solar photovoltaic (PV) manufacturing sector faces a critical imbalance, with upstream segments like polysilicon, ingot, and wafer production lagging significantly behind downstream module assembly. This disparity necessitates substantial imports to meet domestic demand and exposes the nation to global price volatility, prompting discussions on a new government intervention. The Ministry of New and Renewable Energy (MNRE) is actively engaging with the Ministry of Finance to explore a dedicated capital expenditure (capex) subsidy, distinct from the existing Production Linked Incentive (PLI) scheme, designed to invigorate these foundational manufacturing stages. MNRE Secretary Santosh Kumar Sarangi highlighted the need for "a slight tweak in the way in which support could be provided to these kinds of industries" to overcome persistent challenges.

source