• The PLI scheme has an outlay of Rs 4,500 crore

• The PLI scheme is expected to add an additional 10,000 MW capacity of integrated solar PV manufacturing plants and bring direct investment of around Rs 17,200 crore

New Delhi: The Cabinet, chaired by Prime Minister Narendra Modi, has approved on Wednesday the Ministry of New and Renewable Energy's (MNRE) proposal for the implementation of the Production Linked Incentive (PLI) Scheme 'National Programme on High Efficiency Solar PV (Photo Voltic) Modules' for achieving manufacturing capacity of Giga Watt (GW) scale in high efficiency solar PV modules with an outlay of Rs 4,500 crore. The PLI scheme is aimed at boosting India's domestic solar PV manufacturing capacity in line with the Atmanirbhar Bharat Abhiyan. Currently, India imports 80 percent of its solar gear from China.

How with the PLI scheme for solar PV manufacturing work?

Solar PV manufacturers will be selected through a transparent competitive bidding process. And the PLI will be disbursed for five years post the commissioning of solar PV manufacturing plants on sale of high-efficiency solar PV modules. Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the PLI amount will increase with increased module efficiency and increased local value addition.

PLI scheme expected to add 10,000 MW manufacturing capacity

The PLI scheme is expected to add an additional 10,000 MW capacity of integrated solar PV manufacturing plants and bring direct investment of around Rs 17,200 crore in solar PV manufacturing projects. It is expected to create demand of Rs 17,500 crore over five years for 'Balance of Materials,' generate direct employment for about 30,000 and indirect employment for about 1,20,000 people and lead to import substitution of around Rs 17,500 crore every year. The scheme is also expected to provide impetus to Research & Development to achieve higher efficiency in solar PV modules.

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"Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules. The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity. It will also support the Atmanirbhar Bharat initiative," said an official statement.

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