MNRE Releases Updated ALMM List With 3 New Additions

The Ministry of New and Renewable Energy (MNRE) has issued an updated list of approved manufacturers in its ALMM (Approved list of module manufacturers)  list. The List is effective August 17, 2021, with the certifications valid to August 16, 2023, or two years.

While broadly in line with the previous list, the fresh list has three new additions, in the form of Central Electronics Limited with a capacity of 35 MW, Patanjali Renewable Energy Private Limited for 70 MW, and finally, Jakson Engineers for 80 MW capacity. Interestingly, all the three new additions are based in and around Western Uttar Pradesh, in Greater Noida and Sahibabad respectively.

With no foreign manufacturer in the list still, developers hoping for a change will be disappointed. Even though Power and MNRE Minister R.K. Singh has repeatedly gone on record to say that the ALMM list will be one of the tools to drive faster domestic manufacturing, as even foreign firms will be allowed in only if they set up domestic manufacturing.

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Overall domestic capacity available as per the new list is now at  about 8350 MW spread over 26 manufacturers. With a large amount of capacity (around 7 GW by our estimates) coming up by March 2022, assuming quick certification for those, domestic capacity available post March next year, when the 40 % customs duty will kick in, could be close to 15GW, adequate to meet all domestic demand, but for the manufacturers who also service export markets.

Clarity is still not there on the present period, when no duty rules apply, except for the sword of being the ALMM order should developers use imported modules for domestic projects. As we had reported, the power minister has sought to expand the scope of government supported projects to all projects which get any direct or indirect support. The indirect support definition has been sought to be expanded to cover even tax exemptions, or abeyance of charges, besides free access to the ISTS (Inter State Transmission System) system. That pretty much makes any metered project government backed, in the Minister’s view, making the case for using only ALMM approved manufacturer output.

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