As India is aiming to achieve net-zero greenhouse gas (GHG) emissions
by 2070, a commitment made at the COP26 summit, usage of solar energy
is gaining momentum. While the government has introduced policies like
PM Surya Ghar Muft Bijli Yojana, Manish Gupta, Chairman, Insolation
Energy Ltd (INA Solar), India's leading solar panel manufacturing
company, talks to Pushpita Dey about how the adoption can further be enhanced and what more the industry expects from the government. Edited excerpts:
INA Solar has emerged as a strong domestic player in modules and
panels. What is your roadmap to compete with global giants? Any plans for global expansion?
We have three units of solar panel manufacturing. Total cumulative
capacity is around 1.53 gigawatt and we are also expanding to solar
manufacturing, up to 7 gigawatt and our unit 4 and unit 5 already
started in full swing construction in the MP where we are upcoming
with 4.5 gigawatt of the solar cell and 18,000 metric tonne annual
capacity of aluminium frame. We are also coming up with the 500
megawatt of the Kusum Component - a project in IPP with the PPA with
the Rajasthan government.
In next two years, we are planning to deploy more than 3,000 crore
rupees for solar component manufacturing especially solar panel, cell
and aluminium frame, especially for this Kusum projects. We are very
much optimistic for future market, for energy market in our country
and we are aligned with our honourable Prime Minister's dream to make
in India for solar component manufacturing from polysilicon to solar
panel.
What is the import dependence for solar cell manufacturing in
India, particularly on China?
Solar manufacturing requires more than 13 types of raw materials.
Earlier, India was heavily dependent on imports for key inputs such as
solar cells, glass, aluminium and other components needed to
manufacture solar panels. However, domestic capacity for solar cell
manufacturing has expanded significantly and continues to grow. Over
the next two to three years, India is expected to achieve
self-reliance in solar cells, as well as in glass, aluminium and other
key inputs. The government’s focus on Make in India is accelerating
localisation across the value chain.
The two remaining critical challenges are wafers and polysilicon,
where dependence on China remains high. With the central government
now prioritising the complete manufacturing chain—from polysilicon to
finished solar panels—India is likely to achieve end-to-end
self-sufficiency within the next four to five years.
Considering the recent geo-political turmoil, did you face any
import challenges?
We don't face any problem with the raw material import. Our majority
of raw materials are imported either from China or from Malaysia or
Vietnam. For these countries, there is no challenge we have what is
the duty importing from these countries we pay that duty and we import
material there is no problem.
With Budget around the corner, what do you expect from the government?
The key expectation is an increase in PLI support, particularly for
upstream segments such as wafers and polysilicon. Government could
announce a separate, dedicated PLI scheme for this segment to
strengthen domestic value chains. In addition, PM Surya Ghar 2 and
KUSUM Yojana 2 should be rolled out, alongside faster approvals and
execution of transmission infrastructure. Crucially, the government
must guarantee 100% power evacuation. Any delay in transmission lines
could jeopardise over ₹3 lakh crore already invested in solar
manufacturing, putting the entire component ecosystem at risk.
Do you think there will be an impact of United States' retreat from
sustainable finance under president Donald Trump? Will it become
difficult to gee green financing particularly for small players?
There is effectively no alternative for financial institutions but to
fund the green energy sector. What was earlier seen as a policy
requirement has now become an economic and developmental necessity.
India’s total installed power generation capacity stands at about 462
GW, compared with over 2,500 GW in the US and more than 3,300 GW in
China, highlighting how far India still has to go. The transition to
renewable energy is unavoidable, especially as the Supreme Court and
several High Courts have declined approvals for new thermal power
projects. With limited scope for fossil-fuel expansion, renewable
energy remains the only viable path forward. This makes it imperative
for both the government and the financial sector to step up
investments to support India’s long-term energy transition.