India is preparing a $1 billion capital subsidy plan to strengthen its solar manufacturing sector, particularly in the production of wafers and ingots, which are currently the weakest parts of the country’s solar industry.
According to sources familiar with the plan, the Ministry of New and Renewable Energy is driving this initiative as part of a broader effort to reduce the country’s reliance on China for critical solar components.
The subsidy plan is expected to be presented for cabinet approval within the next few months.
Targeting Solar Manufacturing Growth
India aims to replicate the success of its mobile phone manufacturing industry, where billions of dollars in government incentives have attracted global giants like Apple and Samsung.
By offering similar subsidies, the government seeks to significantly grow the domestic solar manufacturing industry, thus boosting the country’s renewable energy capacity and enhancing overall energy security.
The subsidies will help reduce logistical and quality control challenges, which currently contribute to the high cost of wafer and ingot production, making the industry more competitive globally.
This initiative will also create more jobs, foster technological advancements, and ensure a more self-reliant solar sector for India’s future.
Challenges In Solar Manufacturing
While India has grown its capacity for producing solar modules and cells, wafer and ingot production still lags, with just 2 gigawatts of capacity built by Adani Enterprises Ltd.
Despite this, the country continues to rely heavily on imports, particularly from China, for these critical components.
The proposed subsidies aim to address these challenges by making domestic production more competitive.
India sees the subsidy plan as a crucial step in its broader strategy to reduce reliance on foreign solar components and capitalize on global demand for renewable energy.
As the country strengthens its solar manufacturing capabilities, it hopes to play a larger role in the global energy transition while securing its own energy future.
Also Read: India Achieves 88% Self-Sufficiency In Ammunition Production
To read more such news, download Bharat Express news apps
