Even as the government is taking various policy initiatives to boost domestic solar manufacturing, lack of scale and backward integration in the manufacturing process is likely to pose constraints, says Icra.
According the rating agency, to support domestic module manufacturers, the government has formulated various schemes in the last one year which are likely to result into a favourable order pipeline of about 35-40 GW over the next 3-5 years for domestic solar OEM players.
“While timely implementation of these schemes is critical, lack of scale and backward integration in solar module manufacturing process for a majority of module manufacturers are likely to pose constraints,” Icra Group Head and Senior Vice President Sabyasachi Majumdar said.
