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Solar module duty sop under ALMM may not continue after March 31

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Renewables 27 Mar 2024 04:08 PM IST Economic Times

India is unlikely to extend the exemption from criteria for solar module imports known as the approved list of module manufacturers (ALMM) beyond March 31. The Ministry of New and Renewable Energy, in a meeting with solar project developers and module manufacturers, took stock of capacity additions and commissioning timelines, according to sources, adding that the overall view was that no further relaxation was required because the industry had been given adequate time.

Another source stated that a final decision on the problem would be made shortly after considering all factors, and that certain commissioning concessions could be made for modules that arrived at the site before March end.

The government had exempted solar projects commissioned by March 31, 2024, from the mandatory requirement of procuring solar modules from the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019. The ALMM mandate was introduced in 2021, requiring solar project developers to buy modules from an approved list as a non-tariff barrier to boost domestic manufacturing.

However, with the gap between the domestic supply and demand of solar modules, the government had put the mandate in abeyance for FY24. After representations from project developers, the government issued a notice on February 9 for the reimposition of the ALMM mandate along with relaxation to the projects that were in an advanced stage of construction, the order for the modules had been placed, and the line of credit had been opened before March 31. 

However, the government put the same on hold around a week after. Whatever import has come to a solar project site by March 31 can be given time to complete and commission for another six months, one of the industry officials said. However, another person said a call on modification to extend the relaxation for projects in the advanced stage of construction whose module orders were placed or line of credit was opened before March 31 is under discussion.