Approved List of Models and Manufacturers

Also called: ALMM · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT

Meaning

The Approved List of Models and Manufacturers (ALMM) is a government list of solar manufacturers, and the specific product models they make, that have been checked and approved. Many government-backed solar projects may buy only from this list. The list started with modules (finished solar panels). It has since moved further back in the supply chain, first to cells and then to ingots and wafers.

Why it matters: ALMM is India's main tool for building solar manufacturing at home and cutting imports, mostly from China. It is also central to the question of whether "Made in India" solar panels are really made in India.

Explanation

How it works

A list, not a licence. Any firm can make solar products. But a buyer in a covered project must pick a maker and model that is on the list.
Being on the list → the firm can sell to government-backed projects.
Not on the list → the firm loses a large, steady market.
A buyer-side rule. The rule controls what a protected market may buy. It does not control what firms may produce.
Who must follow it: many government-backed projects must buy only from listed makers. Government schemes such as PM-KUSUM (solar pumps and small solar plants for farmers) are typical examples.
What it does:
it guarantees demand for domestic factories;
it keeps out cheap imported panels that have not been checked;
it sets a basic quality bar for public money spent on solar.

The supply chain and the lists

A solar panel is built in layers: polysilicon → ingots and wafers → cells → modules.
Polysilicon: purified silicon, the raw material.
Ingot: a solid block of silicon. Wafer: a thin slice cut from the ingot.
Cell: a wafer turned into a unit that makes electricity.
Module: many cells put together into a finished panel.
The lists cover more of this chain over time:

List	Covers	Mandatory from
List-I	Modules	Already in force
List-II	Cells	1 June 2026
List-III	Ingots and wafers	1 June 2028

Polysilicon has no list yet.
This step-by-step deepening works like a phased manufacturing programme (graded rules that raise domestic value addition step by step). India used one for mobile handsets from 2017.

Worked example: the "thin pyramid"

Capacity on the ALMM in 2026:

Stage	Capacity	Share of module capacity
Modules	~213 GW	100%
Cells	~32 GW	32 ÷ 213 ≈ 15%
Ingots/wafers	~2 GW	2 ÷ 213 ≈ 1%
Polysilicon	Nil	0%

What this means: suppose 100 panels are assembled in India. Domestic capacity can supply cells for only about 15 of them, and wafers for only about 1.
So a "Made in India" panel can still carry an imported cell, wafer and polysilicon.

What makes it work better or worse

Works better when each new list comes with real factory capacity behind it. Example: a production-linked incentive (PLI, a payment linked to a firm's extra sales) for the upstream stages.
Works worse when domestic capacity is too thin at a stage. Then the list either creates shortages or has to be delayed.

In India

Nodal ministry: the Ministry of New and Renewable Energy (MNRE) keeps the list.
Why it was needed: in FY22, India imported solar modules and cells mainly from China. India still has limited wafer-making capacity and depends heavily on imports.
Latest numbers:
Module capacity reached about 172 GW by 31 March 2026.
Capacity on the ALMM list in 2026 was modules ~213 GW, cells ~32 GW, ingots/wafers ~2 GW, and polysilicon nil.
Parliament's view: the Standing Committee on Energy (December 2025) said India is self-sufficient in module assembly. It also said India still imports polysilicon, ingots and wafers, and it recommended dedicated PLI schemes for these upstream stages.
Links to policy:
It supports Atmanirbhar Bharat (2020) and the "Indian manufacturing capabilities" shown at events such as Bharat RE 2026.
It supports the target of 500 GW non-fossil capacity by 2030.
It works alongside the PLI for high-efficiency solar PV modules.

Don't confuse with

Production-linked incentive (PLI): PLI is a subsidy paid on incremental sales over a base year. ALMM is a purchase rule that only says whose products covered buyers may use. PLI pushes supply; ALMM guarantees demand.
Compulsory industrial licensing: a licence is permission to produce at all (today needed for only 5 product groups). ALMM does not stop anyone from producing. It only decides who can sell into covered projects.
Tariffs and quotas (import substitution, pre-1991): these act at the border on every buyer. ALMM acts only on specified (mostly government-backed) projects, so private buyers outside it can still import.
ALMM List-II vs List-III: List-II covers cells (from 1 June 2026). List-III covers ingots and wafers (from 1 June 2028). Polysilicon is on neither.

Prelims Hooks

ALMM = Approved List of Models and Manufacturers. It is kept by MNRE for solar products, and covered government-backed projects must buy only from listed makers.
The supply chain order is polysilicon → ingots/wafers → cells → modules. ALMM grew from modules to cells and then to ingots/wafers.
List-III (ingots and wafers) takes effect on 1 June 2028. The cells list became mandatory on 1 June 2026.
ALMM capacity in 2026: modules ~213 GW, cells ~32 GW, ingots/wafers ~2 GW, polysilicon nil.
Trap: "India is self-sufficient across the solar supply chain." FALSE. It is self-sufficient only in module assembly and still imports polysilicon, ingots and wafers (Standing Committee on Energy, December 2025).
Trap: "ALMM is a production licence." FALSE. It is a list of approved suppliers for covered buyers.

Mains Points

Self-reliance vs cost. ALMM protects domestic makers, but it can raise project costs and slow solar roll-out if listed supply is short or costly. This is the same "captive market" risk NCERT flags for pre-1991 import substitution, where protected producers had little reason to improve quality or cut prices. A good answer argues for time-bound protection paired with competition.
Depth of value addition. With ~213 GW of modules but only ~2 GW of wafers and no polysilicon, Indian capacity sits mostly at the final, easiest step. Extending ALMM upstream (List-III, 2028) works only if it comes with upstream PLI, as the Standing Committee recommended. Otherwise it creates bottlenecks.
Domestic rules vs solar diplomacy. Solar demand pooled through the ISA chases the lowest price, so ALMM-protected Indian makers must still compete on cost to win export markets. Protection at home does not by itself make Indian firms competitive abroad.

Recent developments

November 2026: At the Bharat Renewable Energy Summit, the Ministry of New and Renewable Energy (MNRE) said it will consult industry for 10–15 days before deciding whether to extend the ALMM framework. This includes List-II, which requires solar cells made in India. The consultation shows consultative policy-making (asking industry before fixing a rule). Its outcome will also decide how much of the $400 billion in preliminary investment commitments announced at the same summit becomes cheap clean power, and how much goes into paying for costlier Indian parts.
2026: As the cells rule (List-II) was being rolled out, industry raised concerns about a shortage of domestic cells and stranded investments (money spent on assets that can no longer earn). Developers who had planned projects around cheaper imported cells said those projects could stop making financial sense. This puts the "timing" trade-off at the centre of the debate. One option is to link each new list to actual domestic cell capacity instead of a fixed calendar date.

Industrial Policy, Public Sector, MSMEs and Disinvestment