Very recently, the Union ministry of new & renewable energy (MNRE) expanded the Approved List of Models & Manufacturers (ALMM) framework to cover solar ingots and wafers. This is aimed at further bolstering India’s self-sufficiency over the entire solar equipment value chain. Through earlier ALMM interventions, MNRE sought to reduce India’s import dependency on solar modules and cells. In this special study, tndindia.com tries to gauge the impact that the ALMM framework has had on increasing India’s self-sufficiency in the solar photovoltaic (PV) manufacturing ecosystem.

 
In March 2026, MNRE, expanding the ALMM Order, introduced ALMM List-III for ingots and wafers. This will take effect from June 1, 2028. In other words, with effect from this date, all solar PV projects, including net-metering and Open Access (OA) projects, must use ALMM-listed wafers.
Seven days after the ALMM-List III is published, projects awarded under the tariff-based competitive bidding (TBCB) model, which falls under Section 63 of the Electricity Act, 2003, must also mandatorily specify the use of ALMM List III-compliant wafers.
MNRE has stated that ALMM-List III will be published with at least three independent units (not under common ownership or control) with a combined capacity of 15 GW per year are set up. This will ensure that minimum supply for the manufacture of 15 GW of domestic solar cells is available, annually.
 
The value chain for solar PV modules can be summarized as follows:
Polysilicon –> ingots –> wafers –> cells –> modules
As can be seen, wafers represent a critical intermediate stage between polysilicon (the main raw material) and solar cells (the effective final product). India currently has very limited manufacturing capacity for wafer manufacturing and relies heavily on imports.
ALMM List-III, therefore, aims to drive investment into ingot and wafer manufacturing facilities in India, with an ultimate goal of improving supply chain security.
Though there are no official statistics available, India’s domestic wafer manufacturing capacity is very limited – estimated to be in the range of 2 GW per year.
Reacting favourably to ALMM List-III, Ratul Puri, Chairman, Hindustan Power, noted, “The proposal for ALMM List-III to include solar wafers and ingots is a progressive step towards strengthening the energy supply chain and the solar ecosystem in India. This policy extension accelerates domestic innovation and quality to meet the domestic manufacturing standards. These developments will support capacity expansion across the renewable energy ecosystem and further strengthen India’s path towards Atmanirbharata in clean energy production.”
 
The ALMM List-I for solar PV modules was first published in March 2021 and has undergone several additions of manufacturers, over the years. It is estimated that India’s solar module manufacturing capacity has grown from about 8.2 GW in 2021 to around 172 GW now. This is based on official government estimates. Mercom India, in its newly-released “State of Solar PV Manufacturing in India, 2026” puts India’s solar PV module manufacturing capacity higher at around 210 GW as of end-December 2025, with 119 GW coming online in 2025 alone.
The report further suggests that India’s solar PV module capacity is heavily concentrated in Gujarat that accounts for as much as 45 per cent of India’s total. This western state is followed by Rajasthan with 10 per cent and Tamil Nadu with 7 per cent, speaking just of the top three manufacturing destinations.
After PV modules, MNRE extended the ALMM framework to cover solar cells, through ALMM List-II. The first list was issued on July 31, 2025. It included nine domestic manufacturers with an aggregate manufacturing capacity of around 9.6 GW. In a short span of just around seven months, India’s domestic solar cell manufacturing capacity is estimated to have reached around 27 GW as of end-December 2025, as per Mercom India’s aforementioned report. Between January and December 2025, India’s domestic solar cell capacity rose by around 9 GW.
Gujarat was home to 45 per cent of domestic solar cell manufacturing capacity, followed by Tamil Nadu and Karnataka with respective shares of 16 per cent and 13 per cent, Mercom India has estimated.
 
While ALMM List-II aims to build domestic competence in solar cells and the newly proposed ALMM List-III, with respect to wafers, import dependence is very currently very significant. While India has a relatively high degree of self-sufficiency when it comes to solar PV modules, the same is currently resting on import dependence.
Interacting with tndindia.com, Laxit Awla, CEO, SAEL Industries Ltd, assessed that around four-fifths of India’s domestic solar module production is derived from imported cells.  “India has scaled solar module capacity to around 140 GW under ALMM. Yet remains heavily dependent on imported cells for nearly 80 per cent of production from China and other South-East Asian markets, with domestic cell capacity trailing significantly. This upstream gap highlights vulnerabilities in our PV value chain amid global supply concentration.”
It is important to note that there is currently a rush to commission solar PV projects because ALMM List-II (for solar cells) will take effect in the next two months. On this note, R. Chellappan, Whole Time Director & Vice Chairman, SWELECT Energy Systems Ltd, observed “While India has made tremendous progress in manufacturing, the ecosystem for cell manufacturing is still maturing. Currently, approximately 70 per cent of the module manufacturing is using imported cells and there is a rush to commission projects before May 30, 2026, before ALMM List-II comes into effect.”
 
India is trying to create an indigenous value chain through measures like ALMM and DCR (Domestic Content Requirement). At the same time, it is providing incentives to domestic production through the Performance Linked Incentive (PLI) scheme, which appears to have had the desired effect. Laxit Awla, endorsing the efficacy of PLI schemes, noted, “PLI schemes have spurred investments in integrated manufacturing from polysilicon to modules. With record 44.5 GW RE generation capacity additions in 2025, policy measures will secure supply chain resilience, aligning manufacturing independence with our 500 GW renewable energy commitment by 2030.”
Even as he acknowledged import dependence, Ch. Bhavani Suresh, Founder & Managing Director, Truzon Solar, expressed strong optimism in India’s inherent capability of create an end-to-end domestic value chain. “While the country has made strong strides in modules, solar cells and upstream components still have some dependency on imports. Current domestic cell production is still lower than module demand, which means India continues to rely on imported cells and raw materials such as wafers and polysilicon. That said, the progress in solar cell manufacturing is very encouraging. Large investments are being made to develop backward integration from cells to wafers and eventually polysilicon. Industry projections indicate that India’s manufacturing capacity could reach around 200 GW for modules and nearly 100 GW for cells by FY2028, which would significantly strengthen the country’s self-reliance and even open opportunities for exports,” was how he put his point across.
Chellappan from SWELECT Energy Systems identified skill development as the missing link in the domestic solar PV equipment value chain. “The Indian cell manufacturing had a sluggish start, but with the PLI scheme and ALMM List-I and List-II in place, the capacities have seen and exponential growth over the last few years. With this capacity growth, the learning curve has also increased. However, currently, we still lag when compared to imported cells, in terms of technology adoption, process and quality control, yield and throughput optimization and efficiency levels. The key to unlocking the potential and solving for these issues, is the skill development. There is a gap in the industry.”
All the same, Chellappan was confident that India would bridge the skill development gap soon. “With the kind of push that is currently seen in the market, India will bridge the gap soon. This will get accelerated with upstream and backward integration into wafer and polysilicon and India’s self-reliance and competitiveness will improve. We believe the gap will narrow over the next few years as scale, learning curves and ecosystem integration improve.”
 
As far as the entire solar PV value chain goes – from polysilicon to solar module – it is still in a fledging stage. While there has been rapid capacity development at the downstream (module) end, much needs to be done at the upstream stage, which includes ingots, wafers and cells. The newly-introduced ALMM List-III is expected to catalyze the upstream sector, much like its predecessors have done at the downstream end. The need for India to secure its solar PV chain domestically can never be overstated. India’s RE ambitions, which critically hinge on solar PV installations, can be realized only if a self-reliant value chain, insulated from global vagaries, is developed.
 
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