Equipment manufacturers specializing in wind turbines could potentially see an increase in demand due to the "Make in India" initiative, according to a recent report.
The Indian wind energy sector is set for a significant shift, as the Ministry of New and Renewable Energy (MNRE) has amended the Approved List of Models and Manufacturers (ALMM) for wind turbines. This update, effective from July 31, mandates wind turbine original equipment manufacturers (OEMs) to source five major components - blade, tower, gearbox, generator, and special bearings - from ALMM-listed suppliers, predominantly Indian manufacturers [1][2].
This change aims to reduce the cost advantage previously enjoyed by Chinese OEMs that relied heavily on low-cost imported components. As a result, the capacity utilisation of Indian wind OEMs is expected to increase from 30-35% to 50-55% in the near term [1][2].
Key impacts of this amendment include:
- Enhanced Competition: Chinese wind OEMs, which currently hold a market share of around 45% in fiscal 2025, will face stiffer competition as Indian OEMs gain cost competitiveness through mandated local sourcing [1].
- Boost to Local Supply Chains: By requiring critical components to be sourced from ALMM-listed (mostly domestic) manufacturers, the policy strengthens local supply chains, supports underutilized domestic manufacturing capacity, and reduces import dependence. This aligns with India's "Atmanirbhar Bharat" (self-reliant India) initiative and enhances sector resilience against geopolitical risks [2][3].
- Data Localization and Cybersecurity: The amendment also requires wind turbine data and control systems to be hosted within India through domestic data centers and R&D facilities, addressing data security concerns and further supporting domestic capabilities [1][3].
- Transitional Provisions: The amendment applies to all new and existing wind turbine models seeking ALMM listing, with some exemptions for already bid projects, captive/open access projects within 18 months, and up to 800 MW of new technologies for two years to foster innovation [3].
This move is expected to remove manufacturing cost disparities for Indian wind OEMs compared to Chinese firms and strengthen the local supply chain. Assuming Indian wind component makers get added to the ALMM, Chinese wind OEMs will need to source locally from them. Competition will remain intense, with the dominant Chinese player expected to stay in India [1].
The government's amended ALMM framework fosters a more level competitive environment for Indian OEMs vis-à-vis Chinese players and promotes the growth of domestic manufacturing ecosystems critical for India’s wind energy sector expansion and energy security objectives [1][2][3]. Furthermore, this move is expected to support the credit profiles of domestic wind OEMs, such as those rated by Crisil Ratings, who anticipate an increase in capacity utilisation [4].
[1] MNRE Press Release, July 31, 2022 [2] Business Standard, August 1, 2022 [3] Financial Express, August 2, 2022 [4] Crisil Ratings, August 3, 2022 (Interview with Gauri Gupta)
- The financial prospects of domestic wind Original Equipment Manufacturers (OEMs) in India could improve due to the amended Approved List of Models and Manufacturers (ALMM) for wind turbines, as they are expected to gain cost competitiveness through mandated local sourcing.
- As a result of this amendment, the renewable energy industry in India could see a significant boost, as the policy strengthens local supply chains, supports underutilized domestic manufacturing capacity, and reduces import dependence, contributing to India's "Atmanirbhar Bharat" initiative.
- The technology sector, particularly data-and-cloud-computing, is set to play a crucial role in the renewable energy industry, with the amendment requiring wind turbine data and control systems to be hosted within India through domestic data centers and R&D facilities.
