Solar Industry Calls for Dedicated Manufacturing Zone on Ajmer Road in Rajasthan
Industry leaders in Rajasthan are urging the Rajasthan State Industrial Development and Investment Corporation (RIICO) to shift its strategic focus and establish a dedicated industrial zone for solar panel manufacturing along the rapidly developing Ajmer Road corridor near Jaipur. This call comes as the area has emerged as a significant cluster for solar equipment production, with five manufacturers already operational and several more actively scouting locations for new factories.
Ajmer Road Emerges as Solar Manufacturing Powerhouse
The Ajmer Road region currently accounts for the majority of solar panel manufacturing capacity in Rajasthan, boasting an impressive output of more than 13,000 megawatts. This concentration of manufacturing activity has transformed the corridor into what industry experts describe as an emerging hub with substantial growth potential.
"The ecosystem developing along Ajmer Road is becoming increasingly robust," explained Sunil Bansal, President of the Rajasthan Solar Association. "Beyond solar panels and inverters, we're seeing demand for balance-of-system components that represent nearly 30% of total project costs—items like mounting structures, specialized wiring, charge controllers, and combiner boxes. Manufacturers recognize the advantages of establishing operations closer to this growing hub."
Contrast with RIICO's Previous Strategy in Kakani
This push for an Ajmer Road industrial zone represents a significant shift from RIICO's previous strategy. Approximately two years ago, the corporation established a dedicated industrial area in Kakani, near Jodhpur, based on the rationale that manufacturers would prefer proximity to Rajasthan's primary solar consumption base.
The western districts of Jodhpur, Jaisalmer, Bikaner, and Barmer host the majority of the state's operational solar plants, making the Kakani location seemingly logical for serving this end market. RIICO has been working to address infrastructure challenges in Kakani, particularly water availability issues, while also planning to reduce land rates within the zone to attract more investment.
Policy Changes and Investment Incentives Driving Momentum
The industry's renewed push for an Ajmer Road zone coincides with significant policy developments. The Rajasthan industry department is actively pursuing a budget proposal to officially recognize solar panel manufacturing as an industrial activity, which would make the sector eligible for various investment incentives that were previously unavailable.
"Our proposal to declare solar manufacturing as an industry is currently pending with the government and we expect it to be cleared soon," confirmed a senior industries department official. "We are confident this policy adjustment will catalyze substantial additional investment in solar equipment manufacturing across the state."
This policy change is particularly significant because the government's 2024 policy had stopped treating solar manufacturing as a formal industry, thereby limiting access to crucial incentives. With policy revisions under active consideration and multiple companies waiting to establish manufacturing units, industry representatives argue that a dedicated zone at the emerging Ajmer Road hub would significantly enhance the overall ecosystem and create opportunities for increased investment.
Broader Ecosystem and Economic Implications
Industry representatives emphasize that a dedicated manufacturing zone would not only benefit solar panel producers but would also attract manufacturers of balance-of-system (BoS) components. These ancillary products account for approximately 30% of total solar project costs and represent a substantial economic opportunity.
The development of a comprehensive manufacturing ecosystem along Ajmer Road is expected to create synergies between different segments of the solar value chain, potentially reducing logistics costs, improving supply chain efficiency, and fostering innovation through closer collaboration between manufacturers of different components.
As Rajasthan continues to expand its renewable energy footprint, the establishment of a dedicated industrial zone for solar manufacturing along Ajmer Road could position the state as a national leader in solar equipment production while creating significant employment opportunities and driving economic growth in the region.
