China, US solar cos keen to set up units in India – PLI PULL: The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/energy/power/pli-pull-china-us-solar-cos-keen-to-set-up-units-in-india/articleshow/81979834.cms

Synopsis–China-based LONGi Solar and Trina Solar, two of the world’s largest makers of solar wafers and modules, are in talks with Indian private companies to set up facilities under the Centre’s production-linked incentive (PLI) scheme.

China-based LONGi Solar and Trina Solar, two of the world’s largest makers of solar wafers and modules, are in talks with Indian private companies to set up facilities under the Centre’s production-linked incentive (PLI) scheme. The Cabinet cleared the Rs 4,500 crore scheme on Wednesday. The scheme is likely to be rolled out in the next 15 days, a senior government official said.

The US-based 1366 Technologies and First Solar have also written to the government evincing interest in setting up manufacturing plants in India, besides Indian players like Adani Solar, Vikram Solar and Acme Solar, the official said. LONGi Solar is the world’s largest manufacturer of monocrystalline silicon wafers and has been the top supplier to Indian companies. Trina Solar is among the large international companies in the space. “These two companies are in negotiations with Indian private companies and are expected to bid for the PLI scheme. The expression of interest for request for submission of the scheme is likely to be issued in 15 days,” he said.

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Agencies
The government wants to finalise and allocate the capacities under the scheme to identified players before end of June, the official said. The scheme, expected to lead to creation of 10,000 GW additional manufacturing capacity of high-efficiency photovoltaic modules, will bring direct investment of around Rs 17,200 crore, the government had said on Wednesday. The selection of bidders under the scheme will be on three parameters – the extent of integration, proposed manufacturing capacity and the performance efficiency of modules.

“For example, if somebody is putting up an integrated plant, he will get 50 out of 50. If he is setting up wafers, cells and modules, he will get slightly less marks. We are allowing minimum integration from cell to module, and only module facility will not work,” the official explained. The second parameter is the capacity of the plant. There will be full 50 marks if a company plans setting up 4,000 MW. The marks will reduce for capacity proposed below that, the official said. Similarly, marks will also be assigned subject to minimum efficiency of the module for selection.

Bidders will quote PLI requirement for each of the five years post-commissioning, based on the assumptions of sales, base PLI rate and local value addition. In case of a tie, whoever claims less PLI will get selected, he said. PLI disbursement to the selected bidders under the scheme will start after one year of commissioning on an annual basis based on sales, the efficiency of modules and local sourcing. No PLI will be given if the selected bidders fail to fulfil commitments made under the selection criteria. The PLI can be claimed for five years after commissioning.

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