Centre Planning ₹55B Boost For Solar Wafer Manufacturing, Says Reports

With the PLI push, India aims to produce domestic solar wafers and ingots, creating jobs, reducing imports, and strengthening the country’s clean energy supply chain by 2028.

The Indian government is reportedly preparing to allocate ₹55 billion from its existing ₹240 billion production-linked incentive (PLI) scheme to enhance domestic production of solar wafers and ingots. These components are essential for manufacturing solar panels and have been predominantly imported, particularly from China.

According to a report by Mint, currently, India has substantial capacity for producing solar modules and cells but relies heavily on imports for wafers and ingots. The new incentive aims to establish a self-reliant supply chain for these critical components by 2028. This initiative is expected to create jobs, reduce vulnerability to global supply disruptions, and strengthen the domestic clean energy sector.

In line with this effort, the government plans to implement an Approved List of Models and Manufacturers (ALMM) for wafers, effective June 2028. This policy will require government-backed solar projects to source wafers from approved domestic manufacturers, mandating a minimum combined annual capacity of 15GW from at least three independent producers.

As of June 2025, the PLI scheme has facilitated the establishment of 18.5GW of solar module capacity, 9.7GW of solar cell capacity, and 2.2GW of ingot-wafer capacity. However, the scheme has faced challenges, including delays in project commissioning and supply chain issues. To address these, the government has granted a two-year extension for the commissioning of projects under the PLI scheme.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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