India to increase funding under solar cells, module manufacturing scheme

The government will increase funding under the production linked incentive PLI scheme for domestic solar cells and module manufacturing to Rs 24,000 crore from the existing Rs 4,500 crore to make India an exporting nation. The PLI scheme has brought in solar cells and modules worth Rs 4,500 crore. We received 54,500 MW of manufacturing capacity from solar equipment, and we invited bids. We asked the government to sanction 19,000 crore more under the PLI, which was approved in-principle Now we would have a PLI of 24,000 crore. We would be exporting solar equipment, Power and New Renewable Energy Minister R K Singh told PTI.

The minister said that the country's current solar module manufacturing capacity is 8,800 MW, while the country's solar cell manufacturing capacity is 2,500 MW.

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

The scheme is intended to add 10,000 MW manufacturing capacity of integrated solar PV modules, which would lead to 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 increase.

The PLI scheme is a national program on high efficiency solar PV modules approved by the Union Cabinet and aims at reducing import dependence in a strategic sector like electricity.

Solar PV manufacturers will be selected through a transparent competitive bidding process. The PLI will be disbursed for five years after commissioning of solar PV manufacturing plants.

Manufacturers will be rewarded for higher efficiencies of solar PV modules and sourcing their material from the domestic market. The PLI amount will increase with increased module efficiency and increased local value addition.

Also read: GE to split into three public companies to focus on energy, healthcare and aviation.

Also read: Include semiconductor design industry under the PLI scheme: Karnataka to Centre