CHENNAI: The recent amendment to the Approved List of Models and Manufacturers (ALMM) (Wind) procedure is expected to benefit domestic wind turbine original equipment manufacturers (or wind OEMs) by creating a more equitable footing between Indian and Chinese wind OEMs. This will reduce the disadvantage in manufacturing costs for Indian wind OEMs as compared to their Chinese counterparts, while strengthening the local supply chain. It will also support the credit profiles of the domestic players,
A Crisil Ratings analysis of companies accounting for 85-90% of India's wind OEM industry by order book, indicates as much.
The Ministry of New and Renewable Energy (MNRE), on July 31, amended the procedure for including / updating wind turbine models in the ALMM (Wind) – i.e., the list of certified wind turbine models eligible for installation in the country.
The amendment mandates wind OEMs to source key components—blade, tower, gearbox, generator, and special bearings which account for 65–70% of the total cost of a wind turbine—only from ALMM (Wind Turbine Components) listed suppliers. It also mandates wind turbine data and control systems to remain within India, using local data centers, servers, and R&D facilities4, which in turn should improve data security and enhance the country's cybersecurity ecosystem.
The move mirrors the shift in the solar sector, through introduction of ALMM (Solar Modules) effective April 2024, that boosted domestic manufacturing by limiting approvals to India-based suppliers. On similar lines, the current amendments will nudge the wind OEMs to ‘Make in India’.
Indian wind OEMs, with a market share of around 40–45%, are already sourcing most of the mandated components domestically, while Chinese wind OEMs operating in India import a higher proportion of lower-cost components from China, making their products 10–15% cheaper than those of Indian manufacturers.
“The recent amendment has the potential to level the playing field between Indian and Chinese wind OEMs. Chinese players have expanded their market share from just about 10% in fiscal 2019 to 40-45% in fiscal 2025, benefiting from low-cost imported components," says Ankit Hakhu, Director, Crisil Ratings.
He added that assuming largely Indian wind component makers get added to the ALMM (Wind Turbine Components), Chinese wind OEMs will be required to source locally from them.
"This would reduce their cost advantage over Indian OEMs, and consequently their price advantage may begin to fade. With Indian wind OEMs, already procuring domestically, and thus less likely to raise prices, the policy revision could shift the market share in favour of domestic manufacturers,” Hakhu said.
To support, India has adequate, but underutilised, domestic manufacturing capacity for these components.
As such, the amendment will enhance the share of these local component manufacturers and reduce dependence on imports. This is in line with government's vision of ‘Atmanirbhar Bharat’ and will increase the sector’s resilience to geopolitical shocks. Additionally, the policy also focuses on data localisation, thereby enhancing national security.
Says Gauri Gupta, Team Leader, Crisil Ratings, “However, even with this amendment, competition will remain intense as the dominant Chinese player, which commands the lion’s share of the market, is expected to stay put in India. That said, the policy revision will likely bring in a more level playing field among wind OEMs, which will improve cash flow resilience for Indian wind OEMs. The capacity utilization of Indian wind OEMs is expected to increase to 50-55% in near term, up from 30-35% (in fiscal 2025), supported by healthy orderbooks.”
The revised norms apply to all wind turbine models—existing and new—seeking enlistment in the ALMM (Wind), with some exceptions. The detailed ALMM (Wind Turbine Components) list will be released separately by MNRE.
A key assumption here is that the list will carry predominantly Indian wind component manufacturers, similar to the ALMM for solar modules. Any deviation from this assumption, like for instance inclusion of high number of foreign component makers in the ALMM (Wind Turbine Components) or further exemptions to the revised norms will be key monitorables, the Crisil analysis observed.