New Delhi, June 8 -- India's solar industry is entering a structural transformation phase as the mandatory use of domestically manufactured solar cells under ALMM List-II comes into effect. With this transformation, the solar power market will likely move towards oligopoly, says JM Financial.

With over 120 manufacturers, the Indian solar industry's collective installed module capacity exceeds 210GW, of which 173GW is enlisted under the ALMM List I. These manufacturers can be further classified into three categories: potentially large integrated players, technologically strong domestic players, and policy-dependent assemblers who largely depend on import duties and ALMM protection. Meanwhile, India's "solar cell manufacturing capacity lag...