ALMM is being extended for 2 Years since Indian manufacturing could not cop with the requirement

As per Minister of Power Shri R. K. Singh, currently, 70 GW capacity of Solar projects are under implementation & the Indian module manufacturers have capacity of mere 10 GW; hence India Module manufacturing can not cop up with the requirement.

Over the last two years, the implementation of ALMM and 40% Basic Customs Duty (BCD) on solar modules have effectively closed the door on Chinese supplies. The import restrictions have come at a time when Indian manufacturers are preparing to ramp up the capacity required for the planned solar installation pipeline. Further, the ALMM regime pushed up the prices of even domestic modules due to the severe demand-supply mismatch.

Developers have also complained about a quality differential between domestic and Chinese modules. A large portion of the current domestic capacity – 39 GW – comprises 70% monocrystalline technology. The remaining is polycrystalline capacity, which is expected to be phased out in a couple of years.