Post commissioning of solar PV manufacturing plants, PLI will be disbursed for 5 years based on the sales of high-efficiency solar PV modules
The Union Cabinet has approved the implementation of a Production Linked Incentive (PLI) scheme aiming to expand the manufacturing capacity of high-efficiency solar PV (Photo Voltaic) modules. The scheme has a budget outlay of Rs 4,500 crore.
The PLI scheme aims to increase the capacity of integrated solar PV manufacturing plants by 10,000 Megawatts (MW). It also expects to generate a direct investment of around Rs 17,500 crore in the solar PV manufacturing projects.
Big Push for Manufacturers
As per an official statement released by the government, solar PV manufacturers will be selected through a transparent competitive bidding process.
Post commissioning of solar PV manufacturing plants, PLI will be disbursed for 5 years based on the 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. Thus, the PLI amount will increase with increased module efficiency and increased local value addition, added the statement.
Benefits from the scheme
The scheme aims to provide an impetus to R&D to achieve higher efficiency in solar PV modules. Additionally, the PLI scheme also looks forward to generating a demand of Rs.17,500 crore over 5 years for ‘Balance of Materials’ and import substitution of around Rs.17,500 crore every year.
Apart from these, the scheme envisages creating direct employment and indirect employment of about 30,000 persons and 1,20,000 persons, respectively.
The Cabinet has approved multiple PLI schemes in the past couple of months with a focus to boost component manufacturing in India and make the country self-reliant.
“Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules. The (PLI Scheme) will reduce import dependence in a strategic sector like electricity,” informed the statement.