The earlier Order stated that projects commissioned by 31 March 2024 will be exempted from the requirement of procuring solar modules from ALMM

The Ministry of New and Renewable Energy (MNRE) has stated the reinstatement of the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, effective from 1 April 2024. The directive issued by the MNRE specifies that the ALMM will primarily apply to government-sponsored or subsidised projects, including those procured by government agencies for distribution through Distribution Companies. Notably, this regulation will encompass Solar PV Rooftops and PM KUSUM initiatives, both of which receive subsidies, while projects established under open access or by private entities as captives will remain outside its scope.

Additionally, the MNRE clarified that projects commissioned by 31 March 2024, will be exempt from the requirement of procuring Solar PV modules from ALMM. However, a new provision has been introduced, stipulating that this exemption will extend to projects in advanced stages of construction, provided that orders for modules have been placed before the aforementioned deadline. Verification of the advanced stage of construction and the opening of irrevocable LC before March 31, 2024, will be mandatory for eligibility under this exemption. This decision, sanctioned by the Honorable Minister for New and Renewable Energy (NRE) and Power, aims to streamline the procurement process for solar photovoltaic modules, ensuring adherence to quality standards and facilitating the transition towards sustainable energy sources.

The reinstatement of the ALMM Order is poised to have significant ramifications for the solar energy sector, particularly impacting project planning and execution, as well as procurement strategies employed by government agencies and subsidised initiatives.