• India
  • Apr 08

Cabinet okays Rs 4,500 cr PLI scheme for solar PV modules

The Union Cabinet approved a Rs 4,500 crore production linked incentive (PLI) scheme to boost domestic manufacturing capacity of solar PV modules.

Highlights of the scheme:

• Solar energy 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 National Programme on High Efficiency Solar Photovoltaic (PV) Modules’ will reduce import dependence in a strategic sector like electricity and will also support the ‘Atmanirbhar Bharat’ initiative.

• The scheme is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules.

• It is likely to create direct employment of around 30,000 and indirect employment of 1.2 lakh.

• 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. Thus, the PLI amount will increase with increased module efficiency and increased local value addition.

• It will see a direct investment of around Rs 17,200 crore in solar PV manufacturing projects and demand of Rs 17,500 crore over five years for “balance of materials”.

• The scheme will also help in import substitution of around Rs 17,500 crore every year, and will give impetus to R&D to achieve higher efficiency in solar PV modules.

PLI schemes

An outlay of Rs 1.97 lakh crore has been announced in Union Budget 2021-22 for Production Linked Incentive (PLI) schemes for 13 key sectors for a period of five years starting from FY 2021- 22.

These 13 sectors include are:

1) Mobile manufacturing and specified electronic components 

2) Critical key starting materials/drug intermediaries & active pharmaceutical ingredients

3) Manufacturing of medical devices 

4) Automobiles and auto components

5) Pharmaceuticals

6) Specialty steel

7) Telecom and networking products

8) Electronic/technology products

9) White goods (ACs and LEDs)

10) Food products

11) Textile products: man-made fibre (MMF) segment and technical textiles

12) High efficiency solar PV modules

13) Advanced Chemistry Cell (ACC) battery.

The objectives of PLI schemes are to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.

It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains. 

The schemes are expected to attract global investments, generate large scale employment opportunities and enhance exports substantially.

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Photovoltaic (PV) Photovoltaic (PV) gets its name from the process of converting light (photons) to electricity (voltage).