Mumbai, Oct. 28 -- India needs stronger incentives for domestic solar equipment manufacturing as China considers restricting exports of 12 technologies used in photovoltaic module production, according to Chetan Shah, Chairman and Managing Director of Solex Energy. The proposed restrictions are linked to technologies also used in aerospace, defence and other sensitive sectors.

Shah said China controls an estimated 75 to 90 per cent of the global solar supply chain. He cautioned that delays in establishing domestic cell capacity could create a supply crunch for modules, delay renewable energy projects and increase pressure on tariffs.

India had about 262 GW of module manufacturing capacity and approximately 37 GW of cell manufacturing capacity as of June 2026, Shah said. In contrast, the country's ingot-wafer capacity was estimated at 2 GW, while it had no polysilicon manufacturing capacity. He also noted that much of the installed module capacity uses older mono PERC technology and that several facilities are not operational.

Shah called for the government to extend the timeline of the Approved List of Models and Manufacturers-II, or ALMM-II, by at least 12 months and apply it to all types of solar projects. The framework requires developers to source domestically produced cells from manufacturers on an approved list. An extension, he said, would give local companies time to fulfil existing orders while setting up additional cell capacity.

He also recommended a dedicated mission for solar equipment manufacturing, supported by a production-linked incentive (PLI) programme or capital subsidy for critical photovoltaic equipment, spares and consumables. Partnerships with Indian capital-goods companies, CSIR laboratories and IITs could support this effort. Shah further urged the government to work with the US, European Union, Japan, South Korea and Taiwan to secure alternative equipment and process technologies, while engaging China to protect contracted orders already under execution.

Published by HT Digital Content Services with permission from Construction World.