To make India an exporting nation, the government is going to increase funding under the production linked incentive (PLI) scheme for domestic solar cell and module manufacturing to Rs 24,000 crore from Rs 4,500 crore.
“We introduced the Rs 4,500 crore PLI plan (for solar cells and modules). We requested bids and received 54,500 MW of solar equipment production capacity. We requested an additional Rs 19,000 crore from the government under the PLI, which was granted (in principle). We’d have a PLI of Rs 24,000 crore now. We’d be shipping solar equipment out of the country “, R K Singh, the Minister of Power and New and Renewable Energy stated.
India’s current solar module production capacity is 8,800 MW, while its solar cell manufacturing capacity is 2,500 MW, according to the ministry.
The Union Cabinet approved a Rs 4,500 crore production linked incentive (PLI) scheme in April this year to expand domestic solar PV module manufacturing capacity.
The project aims to increase integrated solar PV module production capacity by 10,000 MW, requiring a direct investment of Rs 17,200 crore at the moment. The volume of investments and local manufacturing capacity envisioned under the PLI program would expand further with the increase in funding to Rs 24,000 crore.
Solar PV manufacturers will be chosen through a transparent competitive bidding process under the plan. The PLI will be paid out for five years after solar PV manufacturing plants have been commissioned and high-efficiency solar PV modules have been sold.
Manufacturers will be rewarded for improved solar PV module efficiency as well as purchasing materials from the local market. With greater module efficiency and local value addition, the PLI amount will rise.
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