The foreseen concerns in the solar sector as the new regime of BCD and ALLM emerge

By Athira Elssa Johnson -



The launch of the Basic Custom Duty (BCD) and the Approved list of model and module manufacturers (ALMM) for supplies to solar projects opens discourse to various concerns in the solar sector. As part of the Atmanirbhar Bharat initiative, the BCD implement duties on solar modules, expecting to enable the Indian manufacturing in solar sector.

While the push on ALLM which hinders the manufactures to procure imports from the global market creates a dilemma as to meet the capacity demand. Even if new local production commences, the availability would be time consuming.

In order to avoid dependency on imports the government launches these as safeguard duties however there is inevitable uncertainty and stagnancy midst pandemic and the adjacent economic crisis.

  Delay in procurement, manufacturing and added charges also impacts the consumers thereby the sector growth is uncertain and under watch to determine outcomes. 

The parameters so far on surface level seems to favour domestic manufacturing and appraisal of local production but on implementation there is a need to analyse the current market scenario, what awaits supposedly should be a qualitative market trend in solar sector although the ongoing plight seems indeterminate considering existing concerns.

But the wide gaps between supply and demand that prevails in the Indian solar sector where the domestic manufacturers are unable to meet demands, there is rise of more firms to expand facilitating manufacturing to narrow down that gap in the coming years.

Whilst for the residential solar sector BCD should create a supportive system for the industry in providing relief against the competitive market environment created by low cost foreign imports but in terms of price, technology, and scale there are challenges that needs to be dealt.

The omission of hugely available manufacturers from the list of ALLM also causes the dilemma for the developers.

As the initiative claims to foster self-sufficiency in all varied sectors, it is vital to develop a blueprint structured in supplementing skills, utilizing resources, inclusion and accessibility to all. 
" I believe in the power of lived experiences and documenting stories . I try to survive amidst the stigma, hate and act against any means / system of oppression. Considers intersectionality as to be the most important in politics and elsewhere. Trying to learn, relearn and unlearn as a journalist. My beat is health and I pursue it with understanding of communities "

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