NSEFI has proposed up to INR 25,000 crore in VGF support from the Government of India to help build 50 GW of domestic ingot and wafer manufacturing capacity
Capital expenditure for ingot and wafer manufacturing is estimated at about INR 1,000 crore per GW; VGF can cover around 40% to 50% of project costs to make domestic production competitive
The industry recommends allocating about 10% of the VGF to support ancillary segments such as diamond wire, quartz crucibles, graphite components and wafer slicing equipment
Manufacturers have also requested up to INR 4,000 crore in incentives for PV equipment manufacturing
Additional proposals include concessional land, capped industrial power tariffs for VGF-supported projects, preferential lending from state-owned institutions
Solar PV manufacturers in India have sought INR 20,000 crore to INR 25,000 crore in viability gap funding (VGF) from the government to help finance 50 GW of domestic ingot and wafer manufacturing capacity. This must include support for ancillary manufacturing ecosystem, according to a proposal submitted to the Ministry of New and Renewable Energy (MNRE) by the National Solar Energy Federation of India (NSEFI) on behalf of the industry.
These plans form part of recommendations from the industry to strengthen the country’s upstream solar manufacturing ecosystem, said NSEFI.
According to the industry body, capital expenditure for ingot and wafer manufacturing in India is estimated at about INR 1,000 crore per GW. VGF covering around 40–50% of project costs—totaling INR 20,000 core to INR 25,000 crore—would be needed to support 50 GW of capacity to make domestically produced ingots and wafers competitive in domestic and global markets.
NSEFI suggests that the funding could be offered at a pre-declared fixed rate per GW and allocated sequentially until the 50 GW capacity target is reached, with a minimum project size to ensure scale and serious participation.
To lower the import-dependence for critical inputs for upstream solar ingot and wafer manufacturing, the association recommends saving 10% of the proposed VGF for ancillary ecosystem. These include diamond wire, tungsten core wire, quartz crucibles, graphite components, specialty process gases, and wafer slicing and automation equipment.
“Supporting only ingot and wafer facilities without parallel development of these segments may leave the ecosystem structurally exposed,” explains NSEFI.
The industry also demands a dedicated incentive of up to INR 3,000 crore to INR 4,000 crore for machine manufacturing via existing schemes like Electronics Components Manufacturing System (ECMS) or a separate scheme altogether.
Non-financial support measures have also been proposed, including a policy advisory encouraging states to provide concessional land in designated manufacturing zones, ensure reliable utilities and fast-track approvals for ingot and wafer projects, and cap industrial power tariffs at INR 2.50 to INR 3.00 per unit for projects receiving VGF.
Among other demands is fund allocation from MNRE’s R&D funds to solar material research. The industry has urged MNRE to advise PSU NBFCs, including Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), along with other financial institutions, to provide preferential lending to ingot and wafer projects and treat them as nationally important.
“India has an opportunity to become self-reliant on the entire Solar Manufacturing Supply Chain and the support to Ingot and Wafer Manufacturing is necessary for not only strengthening our domestic demand but also in emerging as a Global Hub for Upstream Manufacturing,” says NSEFI.
Most of these proposals as submitted by NSEFI were discussed at length by the Indian solar PV manufacturing community at the recently concluded TaiyangNews Solar Technology Conference India 2026 (STC.I 2026).
Speaking at the event, NSEFI CEO Subramanyam Pulipaka highlighted the critical vulnerability of India when it comes to lack of upstream manufacturing. He stressed that India must leverage the EU-India Free Trade Agreement to manufacture solar PV production equipment locally (see STC.I 2026: Continuing India’s Solar PV Manufacturing Momentum).
At the same conference, DhaSh PV Technologies CEO Bhupendra Singh Rawat also proposed introducing an Approved List of Ancillary Manufacturers (ALAM) and introducing at least 20% BCD on solar junction boxes (see STC.I 2026: Bill of Materials Gains Importance As Solar Module Designs Evolve).