India developing fresh subsidy plan for polysilicon manufacturing sector

The government is actively working on a new subsidy framework to accelerate polysilicon manufacturing capacity in India, according to an official from the Ministry of New and Renewable Energy (MNRE). The initiative forms part of broader efforts to strengthen domestic production capabilities in the solar energy supply chain.

India requires a significant expansion of polysilicon manufacturing infrastructure to support its renewable energy ambitions. Officials have identified a need for an additional 30 GW of polysilicon manufacturing capacity to ensure the country can meet future energy demands while reducing dependence on imports.

Polysilicon is a critical raw material for solar photovoltaic panel production. Currently, India relies heavily on imported polysilicon, primarily from China, which constrains the domestic solar manufacturing ecosystem and poses risks to supply chain resilience. By developing indigenous manufacturing capacity, the country aims to create a more self-sufficient and secure renewable energy sector.

The proposed subsidy scheme is expected to incentivize private investment in polysilicon facilities and support the government's broader manufacturing ambitions outlined under its renewable energy targets and Make in India initiatives. Officials indicate that the additional support framework will complement existing incentive structures already in place for solar manufacturing.