The Ministry of New and Renewable Energy (MNRE) has clarified that the relaxation allowing the use of non-DCR modules for solar projects under Component C of the PM KUSUM program applies only to projects that had letters of award (LoA) issued on or before March 31, 2024.

All LoAs issued after that date, irrespective of the bid submission date, must comply with the domestic content requirement (DCR) norms.

The ministry has confirmed that non-DCR modules cannot be used in Component C projects, except where the LoA was issued on or before March 31, 2024. This condition applies even to developers who choose to forgo central financial assistance (CFA).

MNRE stated that DCR is mandatory for all upcoming and pipeline projects under Component C, and all tenders where CFA is applicable must use DCR-compliant modules. It emphasized that there would be no relaxation of DCR provisions under its programs.

It urged developers to ensure timely project execution in line with both DCR and the Approved List of Models and Manufacturers (ALMM) requirements.

The PM KUSUM program will be in force until March 31, 2026. All states have been instructed to sign power purchase agreements (PPAs) for projects under the program by December 31, 2025. The CFA will not be admissible for projects where PPAs are not signed by that date.

The ministry reiterated that it does not intend to provide any further relaxation in DCR provisions.

Earlier this month, MNRE warned that some government agencies issued solar tenders in August with bid windows as short as seven days, seemingly to dodge the ALMM mandate on solar cells. It directed that any tenders issued without following General Financial Rules and Central Vigilance Commission norms must be scrapped if needed and reissued.

In July, MNRE exempted government projects mandated to use solar modules from the ALMM List-I from complying with ALMM List-II for solar cells, provided the bid submission deadline is on or before the cut-off date. It specified that the cut-off date will be one month after the publication of the first ALMM List for cells.

The first ALMM List-II was released on August 1, effectively making September 1 the cut-off date for bid submissions.