India plans new subsidy framework for polysilicon manufacturing to boost solar capacity

The Union government is preparing a fresh subsidy framework for polysilicon manufacturing after the existing production-linked incentive scheme failed to generate sufficient capacity, Santosh Sarangi, Secretary at the Ministry of New and Renewable Energy, disclosed today.

Speaking to reporters on the sidelines of an event, Mr. Sarangi said the ministry is targeting 30 gigawatts of polysilicon capacity addition by 2030 to safeguard energy security and manufacturing resilience. A polysilicon plant coupled with metallurgical grade silicon requires approximately ₹850 crore per gigawatt of capacity, he noted.

Support for capital-intensive projects

"Keeping in mind the fact that such a large investment is required, we are working out ways to support manufacturers," Mr. Sarangi stated. He explained that the revised scheme became necessary because the current production-linked incentive programme did not spur adequate capacity. "Since not a very huge capacity from there, we are planning another scheme which would provide some kind of subsidy for polysilicon [manufacturing]," he said.

The official positioned the 30 GW capacity target as essential for the country's energy independence. "We would be looking to add at least 30GW of capacity addition by 2030," he affirmed.

Offtake challenges in solar sector

In a separate remark, Mr. Sarangi flagged mounting offtake risks for standalone solar projects, revealing that roughly 42 gigawatts of planned capacity lack power purchase agreements. This stranded pipeline includes 18 GW of solar-only projects and around 15 gigawatts secured at elevated tariffs, he said. "Projects with plain solar are unlikely to find buyers," he warned.

The disclosure signals twin policy priorities: upstream manufacturing support through subsidies and downstream demand stabilisation through secured offtake, both critical as India scales renewable energy deployment and domestic supply chains.

Source: The Hindu