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Proposed Wind Turbine Localisation Rule Could Impact Rs50,000 Cr Investment in India

A proposed rule by the Ministry of New and Renewable Energy (MNRE) mandating the localisation of key wind turbine components has raised concerns within the wind power industry. Under the new draft amendment, wind turbines can only be sold in India if their blades, tower, gearbox, and generator are locally manufactured. While the policy exempts manufacturers of up to 50 turbines or 200 MW for the first year, the full requirement will be enforced in six months.

Industry leaders have expressed concerns that the rule could jeopardise investments of around Rs50,000 crore in upcoming wind projects. The key challenge is that the local manufacturing infrastructure for large turbines, such as 5 MW machines, is insufficient. Developing the necessary facilities, particularly for components like gearboxes, could take at least two years. Without this capability, companies may be forced to use smaller turbines, potentially increasing costs for consumers.

Some industry experts have called for a phased implementation of the rule, with clear component-level guidelines and an extended timeline, potentially until 2028. Additionally, the rule mandates that all operational data and R&D activities be handled within India, which is less contentious. The proposed localisation push, however, could strain the development of large-scale wind power projects in the short term.