India is actively seeking recipients for a $2.4 billion government aid package aimed at fostering domestic manufacturing of solar power equipment. The Solar Energy Corp. of India, a state-run entity, has invited bids from solar manufacturers for financial incentives totaling 195 billion rupees, as outlined in documents available on the agency’s website. The government’s objective is to expand the country’s module-making capacity to reach up to 90 gigawatts, sufficient to meet domestic needs and cater to export markets.
Major industrial players such as Reliance Industries Ltd. and Adani Group, led by billionaires Mukesh Ambani and Gautam Adani, emerged as winners in a previous round of solar manufacturing incentives. They are eligible to reapply for additional capacity expansion, as indicated in the bid documents. This financial support aligns with Prime Minister Narendra Modi’s vision to transform India into a manufacturing hub, generating employment opportunities and reducing dependency on imports. The emphasis on local production also positions India as an alternative to China amid global efforts to diversify supply chains following the pandemic.
Globally, Chinese companies control over 441 gigawatts of module capacity, whereas Indian firms currently operate around 15 gigawatts, according to data from BloombergNEF.
The Solar Energy Corp. of India prioritizes companies that commit to establishing fully integrated manufacturing units, covering the entire spectrum from polysilicon to modules. A pre-bid meeting is scheduled for potential investors on December 6, with bids accepted online until January 9.
This initiative builds upon a previous offering of 45 billion rupees specifically for module manufacturing, where Reliance, Adani, and Shirdi Sai Electricals secured assistance.
