Cabinet approves PLI scheme 'National Programme on High-Efficiency Solar PV Modules'

Cabinet approves PLI scheme 'National Programme on High-Efficiency Solar PV Modules'

New Delhi, April 7, 2021

The Union Cabinet today approved a proposal for the implementation of the Production Linked Incentive (PLI) Scheme "National Programme on High-Efficiency Solar PV (Photo Voltic) Modules" for achieving manufacturing capacity of giga watt (GW) scale in high-efficiency solar PV modules with an outlay of Rs 4,500 crore.

Solar capacity addition at present 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 PV Modules will reduce import dependence in a strategic sector like electricity. It will also support the Atmanirbhar Bharat (Self-reliant India) initiative, an official press release said.

The release said solar PV manufacturers will be selected through a transparent competitive bidding process. PLI will be disbursed for 5 years post-commissioning of solar PV manufacturing plants, on sales of high-efficiency solar PV modules, according to the scheme drawn up by the Ministry of New & Renewable Energy.

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 go up with increased module efficiency and local value addition.

The scheme is expected to lead to an additional 10,000 MW capacity of integrated solar PV manufacturing plants. Direct investment of around Rs.17,200 crore is expected in solar PV manufacturing projects.

There will be a demand of Rs.17,500 crore over 5 years for "Balance of Materials". The scheme will create direct employment of about 30,000 and Indirect employment of about1,20,000 persons. It will lead to import substitution of around Rs17,500 crore every year and act as an impetus to Research & Development to achieve higher efficiency in solar PV modules, the release said.


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