PLI funding for solar manufacturing to be raised to Rs 24,000 cr: Minister | Business Standard News

Clipped from: https://www.business-standard.com/article/economy-policy/pli-funding-for-solar-manufacturing-to-be-raised-to-rs-24-000-cr-minister-121111400203_1.html

The government will soon enhance the funding under PLI scheme for the domestic solar cells and module manufacturing to Rs 24,000 crore

Renewable Energy, Solar Energy

The government will soon enhance the funding under the production linked incentive (PLI) scheme for the domestic solar cells and module manufacturing to Rs 24,000 crore from the existing Rs 4,500 crore to make India an exporting nation.

“We brought the PLI scheme (for solar cells and modules) worth Rs 4,500 crore. We invited bids and we got 54,500 MW manufacturing capacity of solar equipment. We asked the government to sanction Rs 19,000 crore more under the PLI, which was approved (in-principle). Now we would have a PLI of Rs 24,000 crore. We would be exporting solar equipment,” Power and New & Renewable Energy Minister R K Singh told PTI.

The minister also informed that at present solar module manufacturing capacity in the country is 8,800 MW while the solar cell manufacturing capacity is 2,500 MW.

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

The scheme is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules entailing direct investment of Rs 17,200 crore at present. 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.

The PLI scheme — National Programme on High Efficiency Solar PV Modules — approved by the Union Cabinet, is aimed at reducing import dependence in a strategic sector like electricity.

Under the scheme, 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. The PLI amount will increase with increased module efficiency and increased local value addition.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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