The Union Cabinet on Wednesday a £4,500 crore production-linked incentive (PLI) program to increase domestic solar PV module production capacity.
The PLI program aims to increase the production capacity of integrated solar PV modules with an output of 10,000 MW, which is a direct investment of £17,200 crore.
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 Energies to implement the PLI program “National Program for High Efficiency Solar PV Modules (Photo Voltic)” to achieve a production capacity of Giga Watt (GW) approved. Scaling in highly efficient solar PV modules with an effort of £4,500 crore, an official statement said.
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.
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The PLI is paid out 5 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 will see a direct investment of around £17,200 crore in solar PV production projects and demand of £17,500 crore 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 system will also help with import substitution of around £17,500 crore per year and will stimulate research and development to achieve higher efficiency in solar PV modules, said the government.