Synopsis : India is preparing an incentive scheme to support more than 10 GW of domestic polysilicon manufacturing capacity, aiming to reduce its dependence on China and strengthen the country's position across the solar manufacturing value chain.
The proposed initiative comes alongside rapid growth in solar cells, modules, ingots and wafers, while the government is also pushing round-the-clock renewable power and expanding India's renewable energy capacity.
India Targets Critical Solar Supply Chain Gap
India is preparing a new support scheme for polysilicon manufacturing, marking a major expansion of the country's domestic solar manufacturing ambitions.
Union New and Renewable Energy Secretary Santosh Kumar Sarangi said the government is working on incentives that could support the development of more than 10 GW of polysilicon manufacturing capacity in India.
The move is aimed at addressing a critical gap in India's solar supply chain, where the country continues to depend heavily on imports for polysilicon, a key raw material used to manufacture solar ingots and wafers.
Polysilicon also has applications in semiconductor manufacturing, making domestic production strategically important beyond the renewable energy sector.
Polysilicon Support Scheme in the Works
Speaking at the CII International Energy Conference & Exhibition in New Delhi, Sarangi said the government is preparing a dedicated support mechanism to encourage manufacturers to move deeper into polysilicon production.
The government has not yet announced the proposed financial outlay or the timeline for launching the scheme.
The initiative would extend India's manufacturing strategy beyond solar modules and cells toward the upstream stages of the industry.
Solar Manufacturing Capacity in India
India has already made significant progress in developing domestic manufacturing capacity:
- Solar module capacity: More than 213 GW
- Solar cell capacity: Around 32 GW
- Expected solar cell capacity: 100 GW within another year
- Expected ingot and wafer capacity: At least 80 GW by June 2028
The proposed polysilicon scheme could help connect these manufacturing stages and create a more integrated domestic solar ecosystem.
Reducing Dependence on China
China currently dominates several stages of the global solar manufacturing supply chain. India's proposed polysilicon initiative is therefore aimed at reducing dependence on Chinese imports and improving supply-chain security.
Domestic polysilicon production could provide Indian manufacturers with greater control over raw material availability and reduce exposure to international supply disruptions, pricing volatility, and geopolitical risks.
The move also aligns with India's broader push toward self-reliance in strategic manufacturing sectors.
₹24,000-Crore Solar Manufacturing Programme
The proposed polysilicon incentives would complement India's existing ₹24,000-crore Production-Linked Incentive (PLI) programme for high-efficiency solar modules.
Under the existing programme:
- Manufacturers were selected for 8.74 GW of capacity in the first tranche.
- The second tranche covered 39.6 GW of fully or partially integrated manufacturing capacity.
The additional focus on polysilicon could help deepen integration and create a stronger domestic supply chain from raw material to finished solar modules.
India Crosses 300 GW Non-Fossil Capacity
The manufacturing push comes as India's renewable energy sector continues to expand rapidly.
According to Sarangi, India crossed 300 GW of non-fossil fuel-based power generation capacity by the end of July and remains on track to achieve its target of 500 GW by 2030.
India has also emerged as the world's third-largest renewable energy market, underlining the growing importance of domestic clean-energy manufacturing and infrastructure.
Wind Manufacturing Also Expands
India's clean-energy manufacturing push is not limited to solar.
Wind manufacturing capacity has reached around 24 GW, with approximately 85% indigenisation, according to the renewable energy secretary.
The government is simultaneously working on improving the reliability and affordability of renewable electricity as renewable capacity increases.
Round-the-Clock Renewable Power at ₹5.25 Per Unit
An important development in renewable power procurement came from the Solar Energy Corporation of India (SECI), which conducted a round-the-clock renewable energy bidding exercise.
The project offers around 90% assured power availability in every time block, with a discovered tariff of approximately ₹5.25 per unit.
According to Sarangi, the tariff is increasingly competitive with conventional sources of reliable electricity.
Under the latest round-the-clock renewable energy structure, solar power would account for approximately 50% of daytime supply, while developers would combine solar, wind and energy storage technologies to maintain continuous power availability.
Renewables Could Lower Power Procurement Costs
Higher renewable penetration and greater availability of round-the-clock renewable capacity could help reduce the average electricity procurement cost for distribution companies.
The government expects the average procurement cost could potentially decline to around ₹4.80 per unit, compared with the current level of approximately ₹5.20 per unit.
This could strengthen the economic case for renewable energy while helping distribution companies manage long-term electricity costs.
India Pushes Cross-Border Renewable Power Trade
India is also exploring greater regional electricity integration.
Sarangi said cross-border energy trade would require more than transmission infrastructure such as power lines, substations and undersea cables. Compatible regulations and market frameworks will also be essential.
The government is working with neighbouring countries, including Bhutan, while supporting the broader One Sun, One World, One Grid initiative.
The concept aims to use differences in time zones and regional renewable resources to enable countries to share clean electricity more efficiently.
What the Polysilicon Push Means for India
The proposed polysilicon incentive scheme could represent another important step in India's renewable energy manufacturing strategy.
By expanding from modules and cells into polysilicon, India could gradually build a more complete solar supply chain domestically. This could create opportunities for manufacturers, reduce import dependence, strengthen energy security and potentially generate new employment and investment.
At the same time, the success of the initiative will depend on the competitiveness of domestic manufacturing, the scale of incentives, access to affordable electricity and the ability of Indian producers to compete with established global suppliers.
Outlook
India's renewable energy strategy is increasingly moving beyond capacity expansion toward manufacturing self-reliance and energy security. The proposed 10-GW-plus polysilicon initiative, combined with growing cell, module, ingot and wafer capacity, could significantly deepen India's solar manufacturing ecosystem.
With the country targeting 500 GW of non-fossil capacity by 2030, strengthening the domestic supply chain will remain a key priority. Meanwhile, developments in round-the-clock renewable power and cross-border electricity trade could help India build a more reliable and cost-efficient clean-energy system.
Disclaimer : This article is for informational purposes only and does not constitute investment, financial, business, or policy advice. Readers should verify official announcements and consult qualified professionals before making decisions based on this information.
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