New Delhi, Aug 5 Centre's amendment to the Approved List of Models and Manufacturers (ALMM) (Wind) procedure is expected to benefit domestic wind turbine original equipment manufacturers by enhancing domestic sourcing of equipment, a report said on Tuesday.
Indian and Chinese wind OEMs will now compete on more equal terms due to a new rule. Currently, Chinese wind OEMs operating in India import lots of lower-cost components from China, resulting in their products being 10–15 per cent cheaper than those of Indian manufacturers, according to a report by Crisil Ratings.
However, these Chinese wind OEMs will be forced to source their components from Indian manufacturers after the recent amendment, assuming Indian wind component makers are only added to the ALMM list. This will remove manufacturing cost disparities for Indian wind OEMs compared to Chinese firms and strengthen the local supply chain.
The move will also support the credit profiles of domestic wind OEMs. The Ministry of New and Renewable Energy (MNRE) amended the procedure for including wind turbine models in the ALMM list (Wind) on July 31. This list certifies wind turbine models eligible for installation in the country.
The new amendment mandated wind OEMs to source key components — blade, tower, gearbox, generator, and special bearings, which make up 65-70 percent of the total cost of a wind turbine — only from ALMM (Wind Turbine Components) listed suppliers. It also mandates wind turbine data and control systems to remain within India, using local data centres, servers, and R&D facilities, which, in turn, should improve data security and enhance the country's cybersecurity ecosystem.
The current amendments will encourage wind OEMs to 'Make in India.' Indian wind OEMs hold a market share of approximately 40–45 percent and source most mandated components domestically. In contrast, Chinese wind OEMs operating in India import a larger share of lower-cost components from China.
Ankit Hakhu, Director, Crisil Ratings said, “Chinese players have expanded their market share from just 10 per cent in fiscal 2019 to around 45 per cent in fiscal 2025, benefiting from low-cost imported components. Assuming largely Indian wind component makers get added to the ALMM, Chinese wind OEMs will need to source locally from them.”
This could benefit India manufacturers who currently have underutilised manufacturing capacity for these components.
“However, even with this amendment, competition will remain intense as the dominant Chinese player, which commands the lion’s share of the market, is expected to stay put in India. The capacity utilisation of Indian wind OEMs is expected to increase to 50-55 per cent in near term, up from 30-35 per cent (in fiscal 2025), supported by healthy order books,” Gauri Gupta from Crisil Ratings said.
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