India Plans New Scheme for Domestic Polysilicon Manufacturing

India is preparing a new scheme for polysilicon makers, with the renewable energy ministry hoping to take the proposal to the Cabinet within a month. The plan is aimed at a gap in India's solar manufacturing chain, where polysilicon is the one major segment without a dedicated support scheme. 

₹25,000 Crore Needed to Meet 2030 Target 

The government wants India to build 30 GW of polysilicon manufacturing capacity by 2030. That would require an estimated investment of ₹25,000 crore. The scheme is still being discussed, and the government has not yet shared details of how the support will work. 

Polysilicon is used to make more than 95% of solar panels worldwide. China dominates this market, accounting for over 93% of global production.  

India's Solar Manufacturing Base Expands 

India already has 225 GW of solar module manufacturing capacity and 37 GW of solar cell capacity. MNRE expects cell capacity to reach 50 GW by March 2027, with applications for around 60 GW already received. 

The government has supported solar manufacturing through production-linked incentives and rules that encourage the use of approved domestic products. It is also considering separate support for ingots and wafers, as well as ways to encourage local production of solar glass. 

Domestic Sourcing Rules for Ingots and Wafers 

The government has introduced domestic sourcing requirements for solar modules and cells. A separate list covering ingots and wafers was introduced in March, with local sourcing for solar projects due to become mandatory from June 2028. 

Polysilicon is not covered by a similar support mechanism yet. The proposed scheme would address that gap as India works to bring more stages of solar manufacturing within the country. 

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Conclusion 

The scheme is still awaiting Cabinet consideration, but the target is clear: India wants to build 30 GW of polysilicon manufacturing capacity by 2030. The challenge will be attracting the investment needed to compete in a market currently dominated by China. 

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