The Union Cabinet Minister and the Minister of Power and New & Renewable Energy, R.K. Singh has confirmed that a 2 year exemption for buying exclusively from ALMM (Approved List of Module Manufacturers) will be coming for large renewable energy projects.
Union Cabinet Minister R.K. Singh has recently confirmed that large renewable energy projects in India will receive a two-year exemption from the requirement to purchase only from the ALMM list. This decision is aimed at promoting the growth of the renewable energy sector in India and to ensure that the country meets its ambitious renewable energy targets.
Singh acknowledged that he was responsible for the creation of ALMM. However, the country’s capacity for 500 Wp modules has barely reached 10 GW. This leaves a serious shortage of quality modules that will be used in many utility projects. Indian developers who were awarded projects after April 2021 were required to pay the BCD on imports.
The approved list of modular manufacturers is a list of companies that have been approved by the government to supply equipment for renewable energy projects. This list is regularly updated to include new and innovative companies in the sector, and to ensure that only the best and most reliable companies are included.
However, the requirement to purchase only from the approved list has been a source of concern for many companies in the renewable energy sector. Some companies have expressed that the list is not comprehensive enough and that it restricts their ability to source equipment from other, potentially more cost-effective, manufacturers.
Singh claimed that Niti Ayog had opposed the ALMM decision when he proposed it. However, he pointed out that tendering was so rapid that 17 GW solar was currently being implemented and would take many years to complete at this pace. To make it easier for developers to import modules and to complete projects, the government relaxed the ALMM condition by two years.
The updated list of ALMM shows that the total capacity listed is approximately 21 GW and it includes 83 module producers.
The move is expected to be welcomed by the solar sector.