Executive Summary:
The Ministry of New and Renewable Energy (MNRE) addresses a parliamentary query regarding India's self-reliance in solar photovoltaic (PV) module manufacturing. The statement, answered on August 20, 2025, outlines the country's current manufacturing capacity, import data from China for FY 2024-25, and various governmental initiatives aimed at promoting domestic solar energy production. These initiatives include the Production Linked Incentive (PLI) Scheme, Domestic Content Requirement (DCR), and imposition of Basic Customs Duty (BCD).
Key Points / Main Content:
Manufacturing Capacity:
The country's solar PV module manufacturing capacity is approximately 100 GW as of August 13, 2025, based on the Approved List of Models and Manufacturers (ALMM).
Import Data from China (FY 2024-25):
352.57 quantity of solar PV modules were imported from China, valued at USD 1,696.77 million (HS Code 85414300).
Source: Directorate General of Commercial Intelligence and Statistics (DGCIS).
Government Initiatives for Self-Reliance:
Production Linked Incentive (PLI) Scheme: A Rs. 24,000 crore scheme to achieve GW-scale domestic manufacturing capacity for high-efficiency solar PV modules. Letters of Award have been issued for setting up 48,337 MW of solar PV module manufacturing units.
Domestic Content Requirement (DCR): Mandates the use of domestically sourced solar PV cells and modules in MNRE schemes like CPSU Scheme Phase-II, PM-KUSUM (Components B & C), and PM Surya Ghar: Muft Bijli Yojana, where government subsidies are involved.
Preference to Make in India: Purchase Preference linked with local content for the RE sector, mandating that only Class-I local suppliers are eligible to bid for identified goods, services, or works with a minimum local content of 50%.
Basic Customs Duty (BCD): Imposed on the import of solar PV cells, modules, solar inverters, and solar glass.
Discontinuation of Customs Duty Concessions: MNRE discontinued issuing Customs Duty Concession Certificates for importing material/equipment for initial setup of solar PV power projects, effective February 2, 2021.
Exemption of Custom Duty on capital goods: Customs duty exempted on import of goods specified in List 41 of notification No. 30/2024-Customs dated 23.07.2024, for manufacturing solar PV cells and modules.
Impact Analysis:
Solar PV Module Manufacturers:
Impact: Encouraged to increase domestic production through incentives like the PLI scheme, DCR, and public procurement preferences. Subject to BCD on imported components but benefit from exemptions on capital goods imports.
Action Required: Take advantage of the PLI scheme, ensure compliance with DCR requirements, and explore opportunities in public procurement.
Solar Project Developers:
Impact: May face higher costs due to BCD on imported modules and the requirement to use domestic content in certain projects.
Action Required: Evaluate project costs considering BCD and DCR, and explore sourcing options from domestic manufacturers.
Consumers (Beneficiaries of subsidized solar schemes):
Impact: Benefit from government subsidies that promote the use of domestically manufactured solar equipment.
Action Required: No direct action required.
Importers of Solar Equipment:
Impact: Face BCD on solar PV cells, modules, solar inverters, and solar glass. Discontinuation of Customs Duty Concession Certificates.
Action Required: Assess the impact of BCD on import costs and adjust sourcing strategies accordingly.
Government (MNRE):
Impact: Responsible for implementing and monitoring the various schemes and policies to promote domestic solar manufacturing.
Action Required: Continue to implement and refine policies to achieve self-reliance in solar energy.
Key Entities Referenced
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for new and renewable energy.
China: Country from which solar equipment is being imported.
Approved List of Models and Manufacturers (ALMM): List of approved solar PV module manufacturers in India.
Production Linked Incentive (PLI) Scheme: Government of India scheme to promote domestic manufacturing of high-efficiency solar PV modules.
Domestic Content Requirement (DCR): Requirement under certain MNRE schemes to source solar PV cells and modules from domestic sources.
PM-KUSUM: Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan, a scheme to promote solar energy use among farmers.
PM Surya Ghar: Muft Bijli Yojana: A scheme to provide free electricity through solar rooftop installations.
Basic Customs Duty (BCD): Duty imposed by the Government on import of solar PV cells, modules, solar inverters and solar glass.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
STARRED QUESTION NO. 399
ANSWERED ON 20/08/2025
MANUFACTURING OF SOLAR PV MODULES
*399. SHRI UJJWAL RAMAN SINGH
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the dependence on China-made solar equipment has not ended yet despite continuous
efforts made by the Government to become self-reliant in the manufacturing of solar photovoltaic
(PV) modules;
(b) if so, the detail thereof;
(c) the number of solar energy related equipments imported from China during the year 2024-25;
and
(d) the various steps being taken by the Government for making the country self-reliant in the field
of solar energy?
ANSWER
THE MINISTER OF NEW & RENEWABLE ENERGY AND CONSUMER AFFAIRS, &
FOOD AND PUBLIC DISTRIBUTION
(SHRI PRALHAD JOSHI)
(a) to (d) A Statement is laid on the Table of the House.
*****STATEMENT
Statement referred to in reply to parts (a) to (d) of the Lok Sabha Starred
Question No. 399 to be answered on 20.08.2025 regarding ‘Manufacturing of Solar PV
Modules’
(a) & (b): The solar photovolatic module manufacturing capacity in the country, as per
Approved List of Models & Manufacturers (ALMM) List-I for solar PV modules, issued on
13.08.2025 is around 100 GW, which is sufficient to cater to the domestic demands.
(c): The details of solar modules imported in the country during FY 2024-25 from China, as
per the website pertaining to export-import data bank of Department of Commerce, are given
below.
Quantity Value of Imports
(in lakhs) (in USD million)
Solar PV Modules 352.57 1,696.77
(HS Code 85414300)
Source: Directorate General of Commercial Intelligence and Statistics (DGCI&S)
(d) The Ministry of New and Renewable Energy (MNRE), Government of India, has been
consistently bringing out policies for making the country self-reliant in the field of solar
energy. Various initiatives taken, inter-alia, include those mentioned at Annexure-I.Annexure-I
Annexure referred to in reply of part (d) of the Lok Sabha Starred Question No. 399 to
be answered on 20.08.2025 regarding ‘Manufacturing of Solar PV Modules’
Initiatives taken to encourage domestic solar manufacturing, inter-alia, include:
(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) Preference to ‘Make in India’ in Public Procurement: In accordance with Department
for Promotion of Industry and Internal Trade (DPIIT) ‘Public Procurement (Preference to
Make in India), Order’, MNRE had notified Purchase Preference (linked with local content)
for RE sector which, inter-alia, identified list of goods and services or works in respect of
which there is sufficient local capacity and local competition is available and mandated that
only “Class-I local supplier” shall be eligible to bid for the above goods/services/works with
the mandate that minimum local content should be at least 50%.
(iv) Imposition of Basic Customs Duty on import of solar PV cells, modules, Solar
Inverters and Solar Glass: The Government has imposed Basic Customs Duty (BCD) on
import of solar PV cells, solar PV modules, solar inverters, and solar glass.
(v) Discontinuation of Customs Duty Concessions: MNRE has discontinued issuance of
Customs Duty Concession Certificates for import of material /equipment for initial setting up
of solar PV power projects with effect from 02.02.2021.
(vi) Exemption of Custom Duty on capital goods for manufacture of Solar Cells and
Modules: The Government has exempted customs duty on import of the goods specified in
List 41 of the notification No. 30/2024-Customs dated 23.07.2024, for the manufacturer of
solar PV cells and modules.