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India Extends Solar Sourcing Rules Upstream, Mandates Local Wafers and Ingots From 2028

A new ALMM list will apply from June 1, 2028 once at least three Indian wafer makers with 15 GW combined capacity are certified.

Overview

  • MNRE created ALMM List-III for wafers and ingots, requiring projects to use List-III wafers made with domestically produced ingots once enforcement begins.
  • Covered projects must follow a cascading rule: ALMM List-I modules built with List-II cells that, in turn, use wafers from List-III manufacturers.
  • Transitional relief applies to bids and PPAs finalized by a cut-off set seven days after the first List-III publication, with later tenders required to mandate List-I/II/III sourcing.
  • India has roughly 172–174 GW of module and about 27 GW of cell capacity, but only around 2 GW of ingot-wafer capacity, underscoring a significant upstream shortfall.
  • Upstream buildout under the solar PLI has lagged and no payouts have been released yet, as industry seeks ₹20,000–25,000 crore in support and the government weighs capital subsidies to reduce import reliance, largely on China.