This is as part of the government aim to boost manufacturing and cut down on dependance on China, since it currently imports nearly 80 percent of the components for solar power from China
Aiming to further boost the solar manufacturing sector of the country, the government has proposed enhancing the funding for the same in the latest Budget announcement for FY 22-23.
During her Budget speech, Finance Minister Nirmala Sitharaman has said that the proposed increasing the the Production Linked Incentive (PLI) scheme for domestic solar cells and module manufacturing to Rs 24,000 crore from the existing Rs 4,500 crore to make India an exporting nation, outlining an additional Rs 19,500 crore to the scheme.
This is as part of the government aim to boost manufacturing and cut down on dependance on China, since it currently imports nearly 80 percent of the components for solar power from China.
“For facilitating domestic manufacturing for the ambitious goal of 280 GW (GigaWatt) of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for PLI scheme for manufacturing of high efficiency (solar) modules with priority of fully integrate manufacturing units for polysilicon to solar PV modules will be made,” Sitharaman said.
In April 2021, the Union Cabinet approved a Rs 4,500 crore PLI scheme to boost domestic manufacturing capacity of solar PV (photo-voltaic) modules. The scheme was aimed at adding 10,000 MW (MegaWatt) manufacturing capacity of integrated solar PV modules entailing direct investment of Rs 17,200 crore at present (existing). 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.
Incentives will potentially help create 30 to 35 gigawatts of solar module capacity and as much as 30 gigawatts of cell capacity by 2024, credit assesor Crisil said in a tweet.
