Wind industry players call for phased approach in government's localisation timeline

The Hindu

2 days ago

The domestic wind energy sector has voiced operational concerns regarding a recent draft amendment by the Ministry of New & Renewable Energy's (MNRE) towards boosting domestic manufacturing.
The draft mandates rapid localisation of key wind turbine components for inclusion in the Revised List of Models and Manufacturers (RLMM).
Industry players said a phased and industry-aligned approach could avoid potential supply chain bottlenecks and significant cost increases.
The two-year timeline for indigenisation could create unintended hurdles in supply chains, delay project rollouts, and potentially escalate project costs by over 35%, they said.
Many critical sub-components such as gearboxes, bearings, converters, and control systems are currently imported.
An immediate localisation mandate, without adequate phase-outs, may discourage foreign OEMs and slow project rollout timelines, they stated.
'India is at a pivotal juncture in its wind energy journey. For component manufacturers like us, the momentum toward 500 GW of renewable capacity presents significant opportunities—from global supply chain shifts post-COVID to the growing push for localisation,' said V Sriniwas Reddy, Executive Director, Synergy Green Industries Ltd.
'However, policy execution must balance ambition with realism. The recent MNRE directive on indigenisation, while well-intentioned, needs a phased, industry-aligned approach,' he said.
Stating that precision parts like gearboxes and converters require not just capex, but tech partnerships and skilled talent, he said the ministry instead of blanket targets, should focus on enabling quality manufacturing, selective localisation, and global competitiveness.
'A National Wind Industrial Cluster Policy—with plug-and-play infrastructure and shared R&D—is the kind of reform that will truly empower the ecosystem. The way forward is through collaboration: OEMs, component makers, and policymakers aligning for long-term, scalable, and export-ready growth,' he said.
'India has the potential to become the world's third-largest wind market—but only if we prioritize quality, investor confidence, and global integration over short-term mandates,' he added.
Francis Jayasury, Director -India, Global Wind Energy Council India – GWEC India said, 'India's renewable energy ambitions present a remarkable opportunity for domestic turbine component manufacturers like us—but success will depend on how smartly we align industrial growth with policy execution.'
'Our Chennai facility is already geared for scale and meets global quality benchmarks, but we face challenges from subsidized imports, fragmented tariffs, and the absence of mandatory standards for key components like anchor cages,' he said.
'We welcome the MNRE's push for indigenisation—it plays to our strengths—but urge that it be implemented through a phased, industry-aligned framework. Not every component needs to be made locally; smart localisation, not forced isolation, should guide our strategy,' he emphasised.
'The focus must be on full utilisation of existing domestic capacity, while partnering globally for highly specialized technologies.
If India wants to become a true global wind manufacturing hub, what we need is certainty: clear HS code classifications, BIS standards for structural components, and export-linked incentives,' he said.
A unified framework would not only boost production and exports but also build long-term investor confidence in the sector, he pointed out.