Govt approves production linked incentive scheme on ‘National programme on High-Efficiency Solar PV Modules’
The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday has given a nod for the Production Linked Incentive (PLI) scheme for solar PV modules with an outlay of Rs.19,500 crore for achieving a manufacturing capacity of Giga Watt (GW) scale in high-efficiency solar PV modules.
The cabinet approved the Ministry of New & Renewable Energy’s proposal for the implementation of the Production Linked Incentive Scheme (Tranche II) on the ‘National programme on High-Efficiency Solar PV Modules’, with an outlay of Rs.19,500 crore for achieving the manufacturing capacity of Giga Watt (GW) scale in High-Efficiency Solar PV Modules, according to an official statement released after the cabinet meeting.
Giving details about the Cabinet decision, Information and Broadcasting Minister Anurag Thakur said that about 2 lakh direct jobs would be created in the sector. The national programme aims to build an ecosystem for the manufacturing of high-efficiency solar PV modules in India and reduce import dependence in the area of renewable energy.
The initiative is expected to reduce import substitution by about Rs.1.37 lakh crore. Solar PV manufacturers will be selected through a transparent selection process. PLI will be disbursed for 5 years after the commissioning of solar PV manufacturing plants and sales of high-efficiency solar PV modules from the domestic market will be incentivized.
The National Programme on High-Efficiency Solar PV Modules aims to build an ecosystem for the manufacturing high-efficiency solar PV modules in India, and thus reduce import dependence in the area of Renewable Energy. It will strengthen the Atamnirbhar Bharat initiative and generate employment, it said.
Solar PV manufacturers will be selected through a transparent selection process. PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants on sales of high-efficiency solar PV modules from the domestic market will be incentivized.
It is estimated that about 65,000 MW per annum manufacturing capacity of fully and partially integrated, solar PV modules would be installed. The scheme will bring a direct investment of around Rs.94,000 crore, according to a statement released by the Ministry of New and Renewable Energy.
The scheme will lead to the creation of manufacturing capacity for the balance of materials like EVA, solar glass, backsheet, etc.
The scheme will lead to import substitution of approximately Rs.1.37 lakh crore. It will give impetus to Research and Development to achieve higher efficiencies in solar PV modules, the Ministry said.
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Any incentives should be linked to a minimum 10 year warranty to customers. This will force manufacturers to up their quality to global standards.
For long, Indian customers had to endure the pain of unreliable products — few years back, there was a report on how Indian PV modules had much lesser lifespan than the Chinese ones.