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Reuters reported that India may face a severe solar cell shortage from June, when new rules will require the use of locally made cells in solar modules. According to a letter dated April 7 from the North India Module Manufacturer Association, domestic solar cell production capacity stands at around 25.6 GW against demand of about 50 GW, while imports from China still account for more than 90% of India’s solar cell demand. The letter said India already mandates the use of locally made modules, but most of those modules are built using imported Chinese cells. It added that around 55% of domestic cell production uses older technology that is rarely used in new projects, creating a mismatch between available supply and project requirements. The association warned that immediate enforcement could raise module costs, delay projects, disrupt execution and affect existing 170-GW module manufacturing capacity. It sought a phased rollout after nine months from June, noting that nearly 50 GW of cell capacity under construction is expected to become operational within a year.
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