Solar Projects for Reference:
United States Solar Firm Plans To Invest $ 300 Million In India
SECI Has Invited the Bids For 100 MW Solar Project in Chhattisgarh
Market Reviews For ALMM:
Good Side of ALMM:
Some stakeholders believe that deploying ALMM would be beneficial to the solar business. They hoped that this would improve the quality of photovoltaic products entering the Indian solar market, force enterprises to improve their manufacturing efficiency, and result in longer-lasting products that would help lower tariffs.
Not only this, the foreign companies who would want to enter into the Indian Market have to setup their manufacturing units in India, which will further help the Indian Solar Economy to grow.
During an interview, Chief Executive Officer of Adani Solar, Mr. Ramesh Nair stated related to ALMM, “Stringent time-to-time audits are always welcome from the government’s standpoint. ALMM could avoid incorrect qualification of manufacturers who do not have a robust process in place and help the emerging manufacturing industry set up effective controls to ensure quality.”
As a result, the industry’s performance and degradation rates may improve. With the industry considering a longer useful product lifecycle for their project, this could contribute to a reduction in tariffs. A minor increase in end-user cost might be an acceptable trade-off to avoid tariff losses due to degradation and other costs associated with untested panels.
One more leading solar company, RenewSys Solar’s Global CEO and Managing Director, Mr. Avinash Hiranandani stated about ALMM, “The ALMM guidelines are fairly simple, and RenewSys has applied for the same. We await the approval and are sure that as the COVID-19 situation improves and work begins, we will receive our approvals. ALMM will ensure competition among other approved players, making it fair play for developers, distribution companies, manufacturers, and other stakeholders by ensuring competitive tariffs through quality products.”
Bad Side of ALMM:
ALMM would not aid the business significantly, according to certain industry stakeholders. They said that the exorbitant application fees of $5,000 ($66) per MW on cells and modules would be prohibitively costly for smaller manufacturers, raising overall project costs and, in turn, driving up electricity tariffs.
The costs don’t end there: as part of the listing process, corporations outside India are also asked to pay for “preliminary inspection” at each production facility. Before registering a company, the MNRE’s standards specify that it will check manufacturing units operating beyond the authority of Indian laws. Applicants must pay for all costs associated with the inspection, including travel, lodging, and other expenses for both domestic and overseas officials assigned to the work of inspection. Depending on the size and location of the industrial site, these fees range from 500,000 ($6,583) to 3 million ($39,500) every visit.
Given the COVID-19 travel limitations, traveling within the country is not regarded as safe, let alone foreign site visits, which will be very dangerous, costly, and impractical. There’s no way of knowing when these international travel restrictions will be eliminated.