New Delhi: India's solar cell manufacturing capacity is set to touch 50-55 GW by fiscal year 2027, up five-fold from 10 GW at the end of fiscal 2024, propelled by the government's policy thrust to reduce imports of cells and modules, according to a Crisil Ratings report released on Thursday.
The expansion will entail a capital expenditure (capex) of Rs 28,000-30,000 crore, likely to be funded through a 70:30 debt-equity mix. Healthy balance sheets and robust cash accrual will support credit quality.
The estimate is based on a Crisil Ratings study of four domestic cell manufacturers, which accounted for 54 per cent of total cell manufacturing capacity as on March 31, 2024.
The 'Make in India' initiative, bolstered by policy measures aimed at reducing imports of cells and modules, will drive backward integration strategies of module manufacturers, leading to higher domestic cell capacity, the report states.
India's module-making capacity had increased to 60 GW by March 2024 from 7 GW in March 2020. This has ensured module imports decline to 25 per cent of total consumption this fiscal from 45 per cent in the last. However, the import of cells - a key input for module manufacturing - mostly from China, remains high at around 80 per cent.
With domestic cell supply inadequate, import dependence could rise given likely renewable capacity addition, the report added. (IANS)
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