MNRE weighs support scheme for polysilicon to back 10 GW capacity in solar manufacturing
The Ministry of New and Renewable Energy (MNRE) is examining a dedicated support scheme to build domestic polysilicon manufacturing capacity of more than 10 gigawatts, aiming to close a critical gap in the solar supply chain
India currently has over 213 GW of solar module manufacturing capacity and 32 GW of solar cell manufacturing capacity, but remains entirely dependent on imports — chiefly from China — for polysilicon, the essential upstream raw material
The Ministry's leadership has indicated that polysilicon will be treated as a separate industrial activity from the rest of the solar value chain, since it is fundamentally a chemical and refining process with applications beyond solar, including semiconductors
The scheme's funding quantum and launch timeline have not yet been finalised or announced
The Ministry separately announced a round-the-clock renewable energy tariff of ₹5.25 per unit in a recent bid, reflecting continued cost competitiveness in renewable procurement
Solar PV Manufacturing Value Chain — Polysilicon, Ingots, Wafers, Cells, Modules
The crystalline-silicon solar manufacturing chain runs polysilicon → ingots/wafers → cells → modules. India's PLI incentives to date have concentrated on the cell-and-module (downstream) end, leaving the upstream, capital- and energy-intensive polysilicon and wafer stages almost entirely import-dependent, principally on China, which supplies the vast majority of the world's solar-grade polysilicon.
Key Details
- Polysilicon (solar grade, ~99.9999% purity) is produced via chemical refining (e.g., Siemens process) of metallurgical-grade silicon — a highly energy- and capital-intensive process, distinct from cell/module assembly
- India's module manufacturing capacity: 213+ GW (per the article); cell manufacturing capacity: 32 GW — indicating a large gap between installed module capacity and upstream cell/polysilicon self-sufficiency
- China accounts for the overwhelming majority of global polysilicon production capacity, giving it dominant pricing and supply-chain leverage
- High-purity polysilicon also feeds the semiconductor industry, which is why MNRE is considering treating it outside the existing solar-specific PLI framework
The proposed 10 GW-plus polysilicon support scheme targets precisely the weakest link — the upstream refining stage — in a value chain where India has already built substantial downstream (module and cell) capacity through earlier incentive schemes.
PLI Scheme for High Efficiency Solar PV Modules (2021) and ALMM
The PLI Scheme for "National Programme on High Efficiency Solar PV Modules" was approved by the Union Cabinet on 7 April 2021, with guidelines issued by MNRE later that month, to build integrated solar PV manufacturing capacity in India and reduce import dependence, particularly on China. It has been implemented in two tranches with a combined outlay of about ₹24,000 crore.
Key Details
- Tranche-I: outlay ₹4,500 crore; Letters of Award issued (Nov–Dec 2021) to three bidders for ~8,737 MW of fully integrated Solar PV module manufacturing capacity, implemented via IREDA
- Tranche-II: additional outlay of ₹19,500 crore, bringing total scheme outlay to roughly ₹24,000 crore
- The Approved List of Models and Manufacturers (ALMM) — administered by MNRE — makes empanelment mandatory for solar modules used in government-subsidised and publicly funded projects, creating a captive domestic market shielded from non-ALMM (mostly Chinese) modules
- The polysilicon scheme under consideration would sit upstream of, and separate from, this existing module-PLI architecture
The polysilicon scheme is being designed as a distinct, follow-on intervention to the 2021 module PLI, addressing the upstream raw-material gap that the original scheme's cell-and-module focus did not cover, and would complete a more self-reliant, fully domestic solar manufacturing chain when combined with ALMM-driven demand.
India's Solar and Non-Fossil Capacity Targets
India's solar manufacturing push is aligned with its broader renewable-energy targets, announced as part of its enhanced climate commitments, and with the "Atmanirbhar Bharat" (self-reliance) objective of reducing import dependence in strategic sectors.
Key Details
- India's target: 500 GW of non-fossil-fuel-based installed electricity capacity by 2030 (announced at COP26, Glasgow, 2021), of which solar forms the largest single component
- National Solar Mission (Jawaharlal Nehru National Solar Mission), launched 2010 under the National Action Plan on Climate Change (NAPCC), was India's founding solar policy framework, later scaled up substantially
- PM Surya Ghar: Muft Bijli Yojana (launched 2024) supports rooftop solar for residential consumers, adding to demand for domestically manufactured modules
- Round-the-clock (RTC) renewable energy tariffs, such as the ₹5.25/unit bid referenced, reflect efforts to pair solar with storage/other renewables to supply firm power, addressing solar's intermittency
Building a fully domestic solar manufacturing chain — including polysilicon — directly supports India's 2030 non-fossil capacity target and Atmanirbhar Bharat goals by insulating the solar buildout from Chinese supply-chain dependence at every stage of manufacturing.
- Proposed polysilicon scheme target: 10+ GW of domestic polysilicon capacity
- India's existing solar module manufacturing capacity: 213+ GW; cell manufacturing capacity: 32 GW
- India remains fully import-dependent (chiefly on China) for polysilicon
- PLI Scheme for High Efficiency Solar PV Modules: approved 7 April 2021; total outlay ~₹24,000 crore (₹4,500 crore Tranche-I + ₹19,500 crore Tranche-II)
- Tranche-I awarded capacity: ~8,737 MW of integrated module manufacturing (Letters of Award, Nov–Dec 2021)
- India's non-fossil capacity target: 500 GW by 2030 (COP26, 2021 commitment)
- Recently discovered round-the-clock renewable energy tariff: ₹5.25 per unit