The Ministry of New and Renewable Energy (MNRE) has kept in abeyance its recent order reimposing the Approved List of Models and Manufacturers regulation from April 1, 2024.

On February 9, 2024, the ministry confirmed the reimposition of ALMM with exemptions for projects set up under open access solar and those in advanced stages of construction and rooftop solar projects with no subsidy.

The MNRE has specified that the ALMM regulation will be relaxed for solar projects in advanced stages of construction that have placed module orders before March 31, 2024. Whether the project is in the advanced stages of construction and if the irrevocable LC has been opened before March 31, 2024, was to be subject to verification.

Following the announcement, many stakeholders raised questions on the ambiguity around the definition of ‘advanced stages of construction,’ the phrase used by the MNRE in the notification reviving the ALMM mandate.

The ministry, in the earlier order, had stated that ALMM would apply to all government-subsidized projects, projects set up for consumption by the government and its agencies or distribution companies.

The announcement was taken off the website following concerns raised by stakeholders.

The MNRE has now stated that the previous order will stay in abeyance till further orders are issued.

The industry is expecting the government to issue further clarifications around the ALMM regulation and issue detailed guidelines for the exemptions.

Raj Prabhu, CEO of Mercom Capital Group, had previously stated that the ALMM reimposition announced in haste without any clear guidelines might lead to many projects being bogged down with petitions and disputes.

Just last month, the MNRE expanded the ALMM by adding 64 MW of new solar module capacity, bringing the cumulative module manufacturing capacity to 22,191 MW. The list now has 72 module manufacturers.

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