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India is weighing a fresh capital-subsidy scheme to spur domestic production of polysilicon, ingots and wafers, the upstream links the country still imports heavily, separate from the existing PLI for high-efficiency modules, per a Moneycontrol report citing government officials.
Why now: India’s module capacity has surged under PLI, but upstream remains thin (studies estimate ~98% of wafers and nearly all polysilicon are imported). Policymakers have been discussing capex relief for these stages to reduce China dependence and complete the value chain.
Context: The renewables ministry has urged lenders to prioritise integrated projects (cells→wafers→polysilicon) amid concerns of a module glut, clarifying it wasn’t a funding freeze. Some players (e.g., Adani) have begun wafer/ingot output, with polysilicon targeted by 2027–28.
Big picture: A targeted subsidy for upstream manufacturing would complement the ₹19,500-cr module PLI and help India move from assembly strength toward end-to-end solar manufacturing.
