The cabinet of the Union on Wednesday approved a PLI (Production-Linked Incentive) program worth 4,500 rupees to increase the domestic production capacity of solar PV modules. The PLI program aims to create a production capacity of 10,000 MW for integrated solar PV modules, which will result in direct investments of 17,200 rupees. According to the government, the PLI system is expected to create direct employment of around 30,000 and indirect employment of 1.2 lakh. The cabinet, led by Prime Minister Narendra Modi, has approved the proposal of the Ministry of New and Renewable Energy to implement the PLI program “National Program for High Efficiency Solar PV Modules (Photo Voltic)” to achieve the production capacity of Giga Watt (GW ) Scale in highly efficient solar PV modules with a cost of 4,500 rupees, according to an official statement.
The expansion of solar energy capacity is currently largely dependent on imported solar PV cells and modules as the domestic manufacturing industry has limited operating capacities for solar PV cells and modules. The national program for high-efficiency solar PV modules will reduce import dependency in a strategic sector such as electricity. The statement said it will also support the Aatmanirbhar Bharat initiative. The manufacturers of solar PV are selected within the framework of a transparent tendering process.
The PLI is paid out five years after the commissioning of solar PV production systems for the sale of highly efficient solar PV modules. Manufacturers are rewarded for the higher efficiency of solar PV modules and for procuring their material from the domestic market. Thus, the amount of PLI increases with increasing module efficiency and increased local added value.
The government said the program aims to add 10,000 MW of additional capacity for integrated solar PV production facilities. This PLI program provides for around Rs.17,200 billion direct investment in solar PV production projects and Rs.17,500 billion demand over five years for “Balance of Materials,” the statement said. It will also help create direct employment of about 30,000 and indirect employment of about 1.20,000 people.
In addition, the program will also help ensure that around 17,500 rupees are imported each year and stimulate research and development to make solar PV modules more efficient, the government said.