In a significant development for India’s solar energy sector, the Ministry of New and Renewable Energy (MNRE) is unlikely to extend the exemption provided from a condition for the import of solar modules known as the Approved List of Module Manufacturers (ALMM) beyond March 31.
Sources familiar with the matter revealed that the decision comes after a comprehensive review conducted by the MNRE in collaboration with solar project developers and module manufacturers. During a meeting held on Tuesday, the MNRE assessed the progress of capacity additions and commissioning timelines within the solar industry. According to insiders, the consensus emerged that further relaxation of the ALMM mandate is unnecessary, given the ample time already afforded to the industry for compliance. While a final decision is pending, there are indications that some concessions may be granted for modules that have reached project sites before the end of March. The ALMM mandate, initially introduced in 2021 as a measure to promote domestic manufacturing, has been subject to ongoing evaluation amidst challenges related to the supply-demand dynamics of solar modules in the country. The government’s exemption for solar projects commissioned by March 31, 2024, from the ALMM requirement aimed to address these concerns temporarily. However, recent deliberations suggest a shift in policy direction, with considerations now focused on reinstating the ALMM mandate.
Following representations from project developers and stakeholders, the government issued a notice on February 9 outlining plans to reimpose the ALMM mandate while offering relaxation for projects in advanced stages of construction. However, this decision was subsequently put on hold, raising speculation within the industry regarding the future regulatory landscape. As discussions continue regarding the potential modification and extension of the relaxation period for ongoing projects, stakeholders are closely monitoring developments within the MNRE. The imminent decision carries significant implications for the solar energy sector, underscoring the need for strategic planning and adaptation within the industry to navigate potential regulatory changes effectively.
