MNRE cancels rushed solar tenders in India over ALMM compliance concerns. Learn how reissued solar tenders will impact developers, local manufacturing, and renewable energy goals.
Introduction
India’s solar power sector has hit a regulatory reset. The Ministry of New & Renewable Energy (MNRE) has directed the cancellation and reissuance of several recently floated solar tenders, citing irregularities in the bidding process. The tenders in question were issued with unusually short bid submission windows—raising concerns that they bypassed the Approved List of Models and Manufacturers (ALMM) mandate, which requires the use of domestically manufactured solar modules and cells. Industry stakeholders argue that such rushed tenders risk undermining transparency and discouraging fair competition. The MNRE’s intervention aims to restore confidence among developers and manufacturers by ensuring proper compliance. This move is expected to create a more level playing field and strengthen India’s renewable energy ecosystem.India’s solar power sector has hit a regulatory reset. The Ministry of New & Renewable Energy (MNRE) has directed the cancellation and reissuance of several recently floated solar tenders, citing irregularities in the bidding process. The tenders in question were issued with unusually short bid submission windows—raising concerns that they bypassed the Approved List of Models and Manufacturers (ALMM) mandate, which requires the use of domestically manufactured solar modules and cells.
Why MNRE Took Action
MNRE’s decision comes at a time when India is pushing hard to strengthen its domestic solar manufacturing ecosystem. The rushed tenders not only risked sidelining local manufacturers but also raised questions about transparency in procurement. By cancelling and reissuing these tenders, MNRE aims to ensure:
- Compliance with the ALMM mandate.
- A level playing field for domestic solar manufacturers.
- Fair participation opportunities for all developers.
- Stronger alignment with India’s Atmanirbhar Bharat (self-reliance) initiative.
Understanding the ALMM Mandate
The Approved List of Models and Manufacturers (ALMM) is a critical policy instrument introduced by MNRE. It requires all government-backed solar projects to source panels and cells from approved Indian manufacturers. The mandate is designed to:
- Reduce dependence on imported solar modules, particularly from China.
- Boost domestic manufacturing capacity.
- Ensure quality control and standardisation in solar installations.
The cancelled tenders allegedly tried to fast-track procurement in a way that could have excluded compliance with this list, undermining the government’s vision.
Industry Impact
The cancellation of tenders will temporarily delay project timelines, but industry experts argue that the long-term impact will be positive. Reissued tenders are expected to:
- Offer more reasonable bid windows for developers.
- Strengthen investor confidence in India’s regulatory transparency.
- Encourage higher participation from local manufacturers.
- Support India’s ambitious target of 500 GW renewable capacity by 2030.
However, developers warn that repeated cancellations and policy uncertainties can slow down execution, potentially affecting power purchase agreements (PPAs) and financing timelines.
Global and Domestic Context
Globally, countries are adopting localisation mandates to secure renewable supply chains. The United States’ Inflation Reduction Act (IRA) and Europe’s Net-Zero Industry Act are examples of how nations are promoting domestic clean energy manufacturing. India’s ALMM policy fits into this global trend of building resilient green economies.
The Road Ahead
While the MNRE’s move highlights India’s firm stance on domestic solar manufacturing, it also underscores the need for:
- Clearer tender guidelines to avoid rushed processes.
- Stronger consultation with developers before issuing bids.
- Infrastructure and financing support to help domestic manufacturers meet rising demand.
Experts suggest that a balance between speed of deployment and compliance with localisation policies will be key to India meeting its renewable targets without compromising on self-reliance.
Conclusion
The cancellation of rushed solar tenders in India signals a critical message: rapid renewable expansion cannot come at the cost of policy integrity. By reinforcing the ALMM mandate, the MNRE is not only protecting domestic manufacturers but also ensuring that India’s solar growth is sustainable, transparent, and aligned with long-term national interests. The coming months will show how reissued tenders shape developer participation and manufacturing growth. This step also sends a strong signal to international investors about India’s commitment to fair and rule-based clean energy expansion. It highlights the government’s determination to balance speed with self-reliance. Ultimately, the move could strengthen India’s position as a global leader in solar energy while building resilience within its supply chain.
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