The Union Cabinet has approved the request by the Ministry of New and Renewable Energy to implement the Production Linked Incentive Scheme (Tranche II) on the “National Programme on High Efficiency Solar PV Modules”. The programme aims to develop an infrastructure in India that will help in domestic manufacturing high efficiency solar photovoltaic (PV) modules. It will also extend support towards the Atamnirbhar Bharat initiative and help in reduction of imports by the country in the field of renewable energy.
The programme has a budget of Rs 195 billion with an objective of achieving GigaWatt manufacturing capacity for high efficiency solar PV modules. The solar PV manufacturers will be selected by a transparent process. The production linked incentive (PLI) will be compensated for the period of 5 years after the commissioning of solar PV manufacturing plants based on domestic sales of high efficiency solar PV modules.
With the implementation of this scheme, it is expected that about 65,000 MW manufacturing capacity will be operated annually including fully and partially integrated solar PV modules. It will also help in bringing direct investment in the country worth Rs 940 billion. There will be an increase in the creation of manufacturing capacity for balance of materials like ethylene vinyl acetate (EVA), solar glass, backsheet etc. Employment opportunities will be generated and import substitution of roughly Rs 1.37 trillion can be done. Also, there will be increased emphasis on research and development to achieve higher efficiencies in solar PV modules.