Wind Power Industry Raises Concerns Over New Local Manufacturing Rules

The Indian wind power sector is currently worried about a new rule proposed by the Ministry of New and Renewable Energy (MNRE). This rule requires that key parts of wind turbines—such as blades, towers, gearboxes, and generators—must be made in India. Industry leaders say this sudden push for indigenisation could hurt ongoing and upcoming projects. 

What the New Rule Says 

On April 17, the ministry released a draft amendment under the Procedure for Inclusion/Updating Wind Turbine Model in the Revised List of Models and Manufacturers (RLMM). According to this draft, wind turbines will only be approved for sale in India if their main parts are manufactured locally. 

The ministry has given some relief to new manufacturers. For the first year, those making up to 50 turbines or producing 200 MW (whichever is lower) will be exempt. But after six months, even these smaller players must locally produce gearboxes and generators. 

Why the Industry is Worried 

Industry leaders are asking the government to give them more time to adjust. One unnamed expert said the rule could put around ₹50,000 crore of investments at risk. They argue that India currently does not have the infrastructure to build gearboxes for larger turbines (like 5 MW or above), which are needed for less windy locations. 

Most good wind locations have already been used. So, new wind farms will need larger turbines that can work at low wind speeds. But India lacks the facilities to produce key parts for these big machines.  

Anil Jain, founder of Refex Energy, added that it will take time to develop a strong local supply chain for such large turbines. Until then, banning imports will leave developers with no choice but to use smaller, less efficient turbines, which could make wind energy more expensive. 

Request for a Phased Approach 

Vineet Mittal of the Avaada Group said a gradual rollout of the rule would be better. He suggested setting clear guidelines for each turbine part and making the rule fully active only after 2028. 

Gearbox manufacturer G Rethinakumar also said it would take at least 2–3 years to get a local supply chain ready. 

Some experts even believe that the rule might have been pushed by local turbine makers who are not yet ready with larger machines, giving them an unfair advantage. 

Cyber Security and R&D Rules 

The draft also includes new rules on cybersecurity. It says that all turbine-related data must be stored on servers located in India. Real-time data transfer abroad is not allowed. It also requires setting up R&D centres within six months. The industry has not raised any objection to these conditions. 

Conclusion 

The wind power sector supports the idea of more local manufacturing. However, companies need more time to set up the necessary factories and systems. Rushing the rule could delay projects and make wind energy more costly. A phased approach with clear timelines would help balance both goals—supporting local industry and continuing clean energy growth. 
 
Read more on: Adani Green Energy Arm Secures Major Solar Power Agreement From UPPCL 
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.