ALMM Reshapes India’s Solar Manufacturing Map, but Gujarat Maintains Leadership

India's solar manufacturing sector has witnessed an extraordinary transformation since 2022. From an import-dependent market to a manufacturing powerhouse, the country has built over 162 GW of solar PV module manufacturing capacity, based on the cumulative enlistments across successive revisions of the Ministry of New and Renewable Energy’s (MNRE) ALMM List-I up to February 2026.

Alongside this, cumulative enlistments under MNRE’s ALMM List-II for solar cell manufactiring indicate that India has built around 26 GW of solar cell manufacturing capacity since the introduction of the cell ALMM framework, reflecting multiple rounds of capacity additions, expansions, and technology upgrades. However, the effective ALMM-enlisted solar cell capacity as of February 2026 stands at about 13.1 GW, following revision-based replacements under ALMM rules. This growth story has a distinct geographic concentration: Gujarat dominates the module segment with a commanding lead, while also holding a decisive position in upstream cell manufacturing.

Will 2026 be the year when other states finally mount a serious challenge?

The Numbers: Clear Dominance in Solar Manufacturing

Out of India’s current enlisted module manufacturing capacity of162 GW, Gujarat accounts for roughly 40–45 percent of total cumulative ALMM-listed module capacity, making it by far the most dominant manufacturing state in the country.

MNRE ALMM List-I, cumulative enlistments up to February 7, 2026

In fact, Gujarat alone hosts roughly as much module manufacturing capacity as the next two to three states combined. Maharashtra and Rajasthan emerge as the next largest module manufacturing states, but their capacities remain significantly smaller in comparison. Even when combined, they fall well short of Gujarat’s manufacturing scale.

Cumulative state-wise module manufacturing distribution (approximate):

This distribution highlights that while 15 states participate in module manufacturing, the sector remains heavily skewed toward a small number of high-capacity clusters, with Gujarat firmly at the centre.

Solar Cell Manufacturing: An Even Stronger Grip at 52.7%

Gujarat's dominance in solar cell manufacturing—the critical upstream segment—is even more pronounced.

Under cumulative ALMM List-II enlistments across all revisions, India has added around 26 GW of solar cell manufacturing capacity, reflecting repeated capacity additions and technology transitions as manufacturers scaled from PERC to TOPCon and expanded production lines.

MNRE ALMM List-II, cumulative across all revisions

However, under ALMM’s revision-replacement framework, the effective enlisted solar cell capacity currently stands at 13,139 MW, spread across seven states. Of this, Gujarat alone accounts for 6,926 MW, giving the state a 52.7 percent share of the effective national total.

The Gujarat Giants: Who’s Driving This Dominance?

Gujarat’s cell manufacturing base is dominated by large, vertically integrated players clustered around Mundra and Dholera.

The Mundra solar manufacturing cluster, anchored by Adani Group entities, forms the backbone of Gujarat’s cell ecosystem. Cumulatively, Mundra-based ALMM enlistments account for about 6.1 GW of solar cell manufacturing capacity, including:

• Mundra Solar PV Limited: 2,298 MW of TOPCon cells 

• Mundra Solar PV Limited (earlier enlistment): 1,893 MW of TOPCon cells

• Mundra Solar Energy Limited: 1,939 MW of PERC cells

Together, these facilities represent nearly 47 percent of India’s effective ALMM-listed solar cell capacity presently.

Alongside Mundra, ReNew Photovoltaics (1,766 MW at Dholera SIR) and Waaree Energies (1,328 MW at Chikhli, Navsari) have established significant cell manufacturing footprints in Gujarat. Waaree also stands out as India’s largest module manufacturer, reinforcing Gujarat’s leadership across both segments.

Why Gujarat Dominates: The Structural Advantages

Gujarat’s manufacturing dominance comes from a legacy of entrepreneurship, capital availability and early movers like Adani and Waaree. Some would call it almost prescient the way entrepreneurs in Gujarat latched on the solar bandwagon with far higher investment commitments than others.  

Port proximity and logistics infrastructure also play a central role. Manufacturing clusters near Mundra, Kandla, and Hazira ports benefit from lower logistics costs and faster turnaround for critical imports such as polysilicon, silver paste, wafers, cells and high-precision manufacturing equipment. The Mundra cluster’s location within a port-linked special economic zone further amplifies this advantage.

Policy support and ease of doing business have also been critical. Gujarat offers faster approvals, competitive industrial land pricing, dedicated power infrastructure, and large industrial zones such as Dholera SIR, enabling manufacturers to scale rapidly.

Ecosystem effects and supply-chain clustering further entrench dominance. Once scale is achieved, manufacturers attract suppliers of glass, frames, junction boxes, encapsulants, and backsheets, lowering procurement costs and lead times while raising barriers to entry for new regions.

The Challengers: Can Other States Close the Gap?

While Gujarat’s dominance appears entrenched, the ALMM data reveals emerging challengers—particularly in south India.

Telangana has emerged as the second-largest solar cell manufacturing state, driven by a singkle firm, Premier Energies, which now has over 3 GW of cumulative ALMM-enlisted cell capacity across multiple revisions.

Karnataka, led by Emmvee Energy’s 1,553 MW TOPCon facility, has established a meaningful non-Gujarat presence.

Andhra Pradesh, Tamil Nadu, Himachal Pradesh, and West Bengal have also entered the cell manufacturing landscape, though largely at smaller scales.

The ALMM Effect: Forcing Vertical Integration

The introduction of ALMM List-II for solar cells marks a watershed moment for India’s manufacturing strategy. From June 1, 2026, all ALMM-listed modules must use cells sourced from ALMM-approved domestic manufacturers.

This mandate favours vertically integrated players or those with long-term domestic cell supply arrangements. For module-only manufacturers, it's a simple choice: invest heavily in cell manufacturing or depend on a limited pool of domestic suppliers.

The February 2026 ALMM revisions further reinforced this trend by adding significant TOPCon cell capacity, signalling a clear technology direction for the Indian market. As a result, cell availability—not module assembly—is increasingly becoming the binding constraint, further strengthening Gujarat’s strategic position. This inability to scale up the more complex cell manuufacturing is one reason integrated players are hopeful of protecting their margins all through 2026 and part of 2027 as well.