The Centre had approveed the Rs 4,500 crore production linked incentive (PLI) scheme in April this year to boost domestic manufacturing capacity of solar PV modules
As India enhances its effort to harness the power of solar energy to make the country self-reliant, the Centre has now announced that it will soon increase the incentives provided uder the production linked incentive (PLI) scheme for the domestic solar cells and module manufacturing to Rs 24,000 crore. The PLI scheme earlier had an outlay of Rs 4,500 crore.
In an interaction with news agency PTI, Power and New & Renewable Energy Minister R K Singh said, “We brought the PLI scheme (for solar cells and modules) worth Rs 4,500 crore. We invited bids and we got 54,500 MW manufacturing capacity of solar equipment.”
“We asked the government to sanction Rs 19,000 crore more under the PLI, which was approved (in-principle). Now we would have a PLI of Rs 24,000 crore. We would be exporting solar equipment,” he added.
The Centre had approved the Rs 4,500 crore production linked incentive (PLI) scheme in April this year to boost domestic manufacturing capacity of solar PV modules and reducing import dependence.
The scheme is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules entailing direct investment of Rs 17,200 crore at present. With the increase in allocation to Rs 24,000 crore, the quantum of investments and domestic manufacturing capacity envisaged under the PLI scheme would further increase.
The minister also informed that at present solar module manufacturing capacity in the country is 8,800 MW while the solar cell manufacturing capacity is 2,500 MW.
Under the scheme, solar PV manufacturers will be selected through a transparent competitive bidding process. The PLI will be disbursed for five years post commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules.
Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. The PLI amount will increase with increased module efficiency and increased local value addition.
