Govt mandates registry of solar manufacturers under ALMM

14 Jun 2021 CW Team

The Ministry of New and Renewable Energy (MNRE) has made it mandatory for solar cell and module manufacturers to register under the Approved List of Models and Manufacturers (ALMM).

Manufacturers listed under ALMM can supply to the project tenders of the government agencies.

On March 10, the first list of module manufacturers was released by the Ministry. For the tenders issued after April 10, the developers will have to procure modules only from the manufacturers listed under ALMM.

A solar developer told the media that domestic manufacturers cannot supply more than 50 MW capacity in a month, it will take more than a year to supply 300 MW. Others said the basic customs duty (BCD) is to come in April 2022, and hence no need to push ALMM. The developers are concerned about how to procure Chinese supplies since none of them is enlisted under ALMM.

ALMM ensures quality solar products, however, it overlaps the existing Bureau of Indian Standards (BIS) certifications in many ways. Stakeholders are not sure about the viability of the whole process. While BIS is a product certification, ALMM caters facility certifications to the manufacturers.

The ALMM is a thinly veiled non -tariff barrier, made bulky by the design and intent to ward off solar imports. It is a combination of 25% of solar cells and 40% of modules. This non-tariff barrier can significantly disincentivize foreign manufacturers from entering the Indian solar market.

According to some suppliers, inspection facilities in China can be delayed for over a year. China is yet to open the country for visitors. When talking about the offshore facilities in Vietnam, Thailand, and Malaysia, the suppliers believe that these facilities are catering to demand in the European and the US market, since they manufacture N-type modules that are of high prices and book until next year.

Image Source

Also read: SECI pays Rs 491 cr to solar, wind developers for power purchase in April

Also read: Renewable energy certificate mechanism to be restructured

The Ministry of New and Renewable Energy (MNRE) has made it mandatory for solar cell and module manufacturers to register under the Approved List of Models and Manufacturers (ALMM). Manufacturers listed under ALMM can supply to the project tenders of the government agencies. On March 10, the first list of module manufacturers was released by the Ministry. For the tenders issued after April 10, the developers will have to procure modules only from the manufacturers listed under ALMM. A solar developer told the media that domestic manufacturers cannot supply more than 50 MW capacity in a month, it will take more than a year to supply 300 MW. Others said the basic customs duty (BCD) is to come in April 2022, and hence no need to push ALMM. The developers are concerned about how to procure Chinese supplies since none of them is enlisted under ALMM. ALMM ensures quality solar products, however, it overlaps the existing Bureau of Indian Standards (BIS) certifications in many ways. Stakeholders are not sure about the viability of the whole process. While BIS is a product certification, ALMM caters facility certifications to the manufacturers. The ALMM is a thinly veiled non -tariff barrier, made bulky by the design and intent to ward off solar imports. It is a combination of 25% of solar cells and 40% of modules. This non-tariff barrier can significantly disincentivize foreign manufacturers from entering the Indian solar market. According to some suppliers, inspection facilities in China can be delayed for over a year. China is yet to open the country for visitors. When talking about the offshore facilities in Vietnam, Thailand, and Malaysia, the suppliers believe that these facilities are catering to demand in the European and the US market, since they manufacture N-type modules that are of high prices and book until next year. Image Source Also read: SECI pays Rs 491 cr to solar, wind developers for power purchase in April Also read: Renewable energy certificate mechanism to be restructured