See Full Document Text
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
RAJYA SABHA
UNSTARRED QUESTION NO. 2861
ANSWERED ON 17.03.2026
EFFECT OF US TARIFF ON SOLAR PANEL MSMEs
2861. SHRI K.R. SURESH REDDY
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the details of the number of MSMEs engaged in production of materials related to solar
energy, State/UT-wise;
(b) the details of the number of MSMEs engaged in export of such materials, State/UT-wise;
(c) whether Government has taken steps to help MSMEs after the imposition of tariffs on solar
panels by the USA; and
(d) if so, the details of such steps and number of beneficiaries?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) The Ministry of New and Renewable Energy does not maintain a centralized database
indicating the number of Micro, Small and Medium Enterprises (MSMEs) engaged specifically in
the production of materials related to solar energy on a State/UT-wise basis.
However, the Ministry maintains the Approved List of Models and Manufacturers (ALMM) for
solar PV modules and solar PV cells, which contains details of solar PV module and solar PV cells
manufacturers, including their manufacturing state and manufacturing capacities. The State/UT-
wise solar PV module and solar PV cell manufacturing capacities enlisted under ALMM are placed
at Annexure-I.
(b) to (d) The domestic demand for solar PV cells and modules in India remains strong,
encouraging the companies, including MSMEs, to actively participate in the domestic market.
Further, the Government is facilitating companies engaged in solar PV manufacturing and exports
through various measures, inter alia those mentioned at Annexure-II. These efforts are
contributing to the overall development of domestic solar PV manufacturing, including promoting
exports of solar PV cells and modules. As per the export–import databank of the Department of
Commerce, India exported solar PV cells and modules worth around USD 885 million during April
2024 to December 2024, which increased to approximately USD 994 million during April 2025 to
December 2025.
*****Annexure-I
Annexure referred to in reply of part (a) of the Rajya Sabha Unstarred Question No.
2861 for 17.03.2026 regarding ‘Effect of US tariff on solar panel MSMEs’
(i) State/UT-wise Solar Module Manufacturing capacity enlisted under ALMM
S.No. State Capacity (in MW)
1 Andhra Pradesh 632
2 Bihar 27
3 Chhattisgarh 695
4 Goa 125
5 Gujarat 80060
6 Haryana 9749
7 Jharkhand 142
8 Karnataka 9696
9 Maharashtra 11414
10 Odisha 450
11 Punjab 269
12 Rajasthan 21779
13 Tamil Nadu 15199
14 Telangana 7858
15 Uttar Pradesh 6531
16 Uttarakhand 2905
17 West Bengal 5061
Total 172592
(ii) State/UT-wise Solar Cell Manufacturing capacity under ALMM
S.No. State Capacity (in MW)
1 Andhra Pradesh 1074
2 Himanchal Pradesh 779
3 Gujarat 11254
4 Karnataka 1833
5 Tamil Nadu 7966
6 Telangana 3283
7 West Bengal 602
8 Uttar Pradesh 437
Total 27228Annexure-II
Annexure referred to in reply of parts (b) to (d) of the Rajya Sabha Unstarred Question
No. 2861 for 17.03.2026 regarding ‘Effect of US tariff on solar panel MSMEs’
(i) Production Linked Incentive (PLI) Scheme: The Government of India is
implementing the Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV
Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High
Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore. Under the Scheme,
Letters of Award have been issued for setting up of 48,337 MW of fully/ partially integrated
solar PV module manufacturing units.
(ii) Domestic Content Requirement (DCR): Under some of the current schemes of the
MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya
Ghar: Muft Bijli Yojana, wherein government subsidy is given, it has been mandated to
source solar PV cells and modules from domestic sources.
(iii) Imposition of Basic Customs Duty on import of solar PV cells and modules: The
Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and
solar PV modules.
(iv) Exemption of Custom Duty on capital goods for manufacture of Solar Cells and
Modules: The Government has exempted Basic Customs Duty on import of goods
specified in List 18 of Notification No. 45/2025-Customs dated 24th October 2025, for the
manufacturer of solar PV cells and modules.
(v) Bilateral engagement: In addition to export efforts undertaken by individual
companies, the issue of solar supply chains, including exploring the possibility of export
of solar PV cells and modules from India, is also discussed at the Government level during
bilateral engagements with partner countries/regions, including in the context of free trade
discussions.
*****