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Government Plans PLI Scheme to Boost Polysilicon Manufacturing

MNRE, Finance Ministry in discussions to strengthen solar supply chain. The Ministry of New and Renewable Energy (MNRE) is in talks with the Ministry of Finance to introduce a production-linked incentive (PLI) scheme aimed at promoting domestic manufacturing of polysilicon—an essential raw material in the solar power value chain.

Polysilicon, a highly refined form of silicon, serves as the base material for over 95% of solar panels worldwide. It is processed into multi-crystalline structures, which are then used to manufacture wafers, solar cells, and ultimately photovoltaic (PV) modules. Strengthening domestic production of this critical input is seen as a key step toward building a self-reliant solar ecosystem.

The proposed scheme is part of India’s broader strategy to reduce reliance on imports—particularly from China—and to reinforce its solar manufacturing supply chain. In recent years, the country has significantly expanded its manufacturing capacity, largely supported by policy measures such as the Approved List of Models and Manufacturers (ALMM).

At present, India has an installed solar module manufacturing capacity of about 172 GW and approximately 65 GW of solar cell capacity. However, dependence on imports persists for upstream components like polysilicon. According to MNRE Secretary Santosh Kumar Sarangi, while downstream capacities have grown substantially, the upstream segment still requires targeted policy support.

He also noted that polysilicon manufacturing differs significantly from the ingot-to-module value chain, and global solar manufacturers may not necessarily venture into this segment. As a result, a dedicated incentive framework is being explored to attract investment and develop domestic capabilities in this critical area.