India Urges Wind Energy Sector to Boost Local Content to 85%

Union Minister Pralhad Joshi has urged the wind energy sector, encompassing original equipment and component manufacturers, to raise the proportion of domestically produced materials and components in projects to 85%, up from the current 64%. Addressing the seventh edition of Windergy India in Chennai, Joshi highlighted the critical need to enhance domestic value addition to fortify India's clean energy supply chain, especially amidst evolving global dynamics and increasing geopolitical challenges. He noted that wind energy currently contributes nearly one-fifth of India's 257 GW non-fossil fuel installed capacity and plays a key role in driving 'Aatmanirbharta' and 'indigenisation'.

The minister expressed optimism about India's potential to capture 10% of the global wind supply chain by 2030 and up to 20% by 2040. India is already among the top five countries with significant domestic wind component manufacturing, having achieved approximately 54 GW of installed wind capacity. The government anticipates that future capacity additions, particularly the next 46 GW, will be substantially driven by domestic manufacturing, supported by policies like compliance with the Approved List of Models and Manufacturers (ALMM) for wind projects. Projections indicate that wind capacity installations in the current financial year are expected to surpass 6 GW.

Girish Tanti, Chairman of the Indian Wind Turbine Manufacturers Association, stated that India has built a resilient and competitive wind manufacturing ecosystem with nearly 64% local content and the involvement of over 2,500 MSMEs.

Impact: This directive is expected to significantly boost domestic manufacturing, create more jobs, and reduce reliance on imported components for wind energy projects. It may lead to increased investment in local production facilities and R&D for wind energy technologies. Companies focusing on local sourcing and manufacturing will likely benefit, while those heavily dependent on imports might face challenges. The focus on 'Aatmanirbharta' could position India as a global manufacturing hub for wind energy components.

Rating: 8/10

Definitions: Local Content: The percentage of a product or project's value that is sourced or manufactured within a specific country, in this case, India. Aatmanirbharta: A Sanskrit term meaning self-reliance, emphasizing India's goal to become self-sufficient in various sectors. Indigenisation: The process of developing and manufacturing products or technologies locally rather than relying on foreign sources. MSMEs: Micro, Small and Medium Enterprises, a crucial segment of the Indian economy comprising small to medium-sized businesses. ALMM: Approved List of Models and Manufacturers, a regulatory list maintained by the government that specifies eligible wind turbine models and their manufacturers for use in projects.