The Indian Ministry of New and Renewable Energy (MNRE) has decided to reimpose the regulatory measure of Approved List of Models and Manufacturers (ALMM) for solar PV modules from April 1, 2024 in India. The ALMM order, which aims to promote domestic manufacturing, was kept in abeyance during FY 2023-24. As per a new order by the ministry, the scope of the reintroduced ALMM will be limited. It will be applicable only to solar power projects sponsored or subsidised by the central or state governments. ALMM will cover government agencies procuring solar power for their own consumption or for further distribution through distribution companies to end consumers.
In addition, the ALMM will also apply to roof top solar projects and components of PM KUSUM scheme which receive capital subsidies from the government. However, private solar power projects set up under open access route or as captive power projects will be exempted from ALMM norms. The MNRE order provides clarity that ALMM will not apply to private companies or entities setting up their own solar power generation capacity. The MNRE has also provided relaxations on cut-off date for under construction projects to be exempted from ALMM. Earlier projects commissioned before March 31, 2024 were to be excluded from the approved list requirement. Now, under construction projects where solar modules have been procured or placed orders for before March 31, 2024 through irrevocable letters of credit will also be exempt.
This relaxation has been granted so that solar power projects at advanced stages of installation or construction do not get adversely impacted due to the reintroduction of ALMM. The progress of such projects will be subject to verification. The approved list mechanism is a qualifying requirement for solar module suppliers. Only models and manufacturers included in the list are eligible to supply to ALMM covered government and subsidised projects. The list is updated from time to time by MNRE based on testing and certification norms.
REGlobal’s Views: The government’s previous suspension of ALMM for a year was on account of supply chain issues and to allow time to developers to adjust to the regime. This reintroduction of the ALMM has come at a time when the government has been focusing on reducing solar imports and promoting domestic manufacturing of solar cells and modules. Further, to ensure the small but growing corporate solar market is not impacted, the recent ALMM order provides exemptions to these projects and is only applicable for government-sponsored and government allocated projects. However, this will surely impact foreign manufacturers that are yet to be registered on ALMM.
