Avaada Group, one of India’s leading renewable energy companies, is among several industry bigwigs set to benefit from the Indian government’s upcoming $1-billion capital subsidy plan aimed at boosting the country’s solar manufacturing industry. This initiative, part of India’s strategy to reduce reliance on China for critical solar components like ingot wafers and polysilicon, will accelerate the local production of solar cells and modules, capitalising on the global energy transition.

In an exclusive interview with CNBC TV18, Vineet Mittal, Chairman of Avaada Group and President of the Sustainable Projects Developers Association (SPDA), said Avaada, alongside several other leading energy companies, will be among the key companies set to receive funding from the government’s production-linked incentive (PLI) scheme.

“The government is incentivising domestic manufacturing to ensure India becomes self-sufficient across the entire solar production value chain,” he said.

India’s import dependence on China

India has traditionally relied heavily on imports from China, especially for ingot wafers and polysilicon, which are essential for manufacturing solar cells and modules. At present, the country’s domestic manufacturing capacity for these components remains limited, with most of the country’s demand still met through imports.

According to industry estimates, around 80% of India’s demand for solar modules and solar cells is met through imports, primarily from China. This heavy dependence is a significant factor driving the Indian government’s push for self-sufficiency and the development of a domestic solar manufacturing supply chain.

Vineet Mittal emphasised the urgent need for a strong local supply chain to support India’s solar manufacturing ambitions. “As the president of SPDA, I can confirm that the Ministry of New and Renewable Energy (MNRE) has conducted deliberations with industry stakeholders on how India should enhance domestic manufacturing of ingots, wafers, and polysilicon. The government has already introduced the authorised list of module manufacturers and the next step is the authorised list of cell manufacturers,” he said.

Push for local manufacturing

Mittal also highlighted how the government is pushing for local manufacturing timelines. The objective is that by 2026, all solar cells will be domestically produced, and by 2028, all solar wafers must be locally manufactured. “This is a crucial step toward reducing import dependence and strengthening India’s solar ecosystem,” he added.

Avaada has already developed 6.5 GW of solar and wind energy projects across the country and has around 5 GW under construction. The company’s portfolio includes landmark projects such as India’s first 15 MW solar project in Gujarat and the country’s largest single-site solar farm, a 1,250 MW project in Bikaner, Rajasthan.

Looking ahead, it is rapidly expanding its solar manufacturing capabilities. The company plans to scale its solar module manufacturing capacity to 10GW and its solar cell manufacturing capacity to 6GW, positioning itself among India’s largest solar manufacturers. Additionally, Avaada is venturing into green hydrogen production, forming a strategic partnership with Switzerland’s Casale for ammonia licensing, reinforcing its role at the forefront of green energy innovation.

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