The government is preparing a Production-Linked Incentive (PLI) scheme for polysilicon manufacturing as it seeks to strengthen the domestic solar manufacturing value chain and reduce the country’s dependence on imports. Polysilicon is a critical raw material for manufacturing solar photovoltaic (PV) modules. At present, India relies almost entirely on imports to meet its polysilicon requirements. The proposed support scheme could therefore play an important role in building domestic manufacturing capabilities and strengthening supply-chain security.
New Support Scheme to Promote Domestic Polysilicon Production
Speaking at the seventh Confederation of Indian Industry (CII) International Energy Conference and Exhibition, Santosh Kumar Sarangi, Secretary at the Ministry of New and Renewable Energy (MNRE), said the government is working on a support scheme to encourage polysilicon manufacturing in India. The proposed PLI framework is aimed at attracting investment into this strategically important segment and creating a stronger domestic supply base for the solar industry. As a result, the initiative could help reduce import dependence while supporting the government’s broader efforts to develop an integrated solar manufacturing ecosystem.
Polysilicon Forms the Foundation of the Solar PV Supply Chain
Polysilicon occupies the upstream end of the solar PV manufacturing value chain. Manufacturers first process polysilicon into ingots, which are subsequently sliced into wafers. These wafers are then used to manufacture solar cells, which are finally assembled into solar PV modules or panels.
The overall manufacturing chain can therefore be broadly represented as:
Polysilicon → Ingots → Wafers → Solar Cells → Solar Modules
Developing domestic capabilities across these stages can help India establish a more integrated and resilient solar manufacturing industry.
Upstream Solar Manufacturing Faces Implementation Challenges
India’s existing PLI scheme for solar PV modules covers both upstream and downstream segments. The upstream segment includes polysilicon, ingots and wafers, while the downstream segment covers solar cells and modules. However, implementation and investment in upstream manufacturing have progressed more slowly, particularly in areas such as polysilicon refining and ingot and wafer production. The proposed dedicated support for polysilicon could therefore address a critical gap in India’s solar manufacturing ecosystem.
Government Views Polysilicon as a Strategic Industry
The government is also considering polysilicon manufacturing as an independent industrial sector rather than treating it solely as one component of the solar manufacturing value chain. This approach reflects the nature of polysilicon production, which involves significant chemical processing and refining. Consequently, developing domestic polysilicon capacity could create capabilities that extend beyond the solar industry. Moreover, higher-purity polysilicon has potential applications in the semiconductor industry, making domestic production strategically relevant to India’s broader ambitions in advanced manufacturing and electronics.
PLI Could Strengthen India’s Solar and Semiconductor Ecosystems
A dedicated PLI scheme for polysilicon could encourage large-scale investments in refining and processing capacity. At the same time, it could strengthen the upstream segment of India’s solar PV industry and reduce exposure to global supply-chain disruptions. More importantly, building domestic expertise in polysilicon refining could create synergies between India’s renewable energy and semiconductor manufacturing ambitions. As reported by indianexpress.com, as India continues to expand its solar power capacity, developing a reliable domestic supply of critical raw materials will become increasingly important. The proposed polysilicon PLI scheme could therefore become a key step towards creating a more integrated, competitive and self-reliant clean-energy manufacturing ecosystem.
