New Delhi: Union Minister for New and Renewable Energy RK Singh has said that the Centre will soon announce an increase of Rs 19,000 crore in the financial outlay for the production-linked incentive (PLI) scheme for domestic solar cell and module manufacturing, thereby making space for more bidders to come within the ambit of the scheme. At present, the outlay of the scheme is Rs 4,500 crore. After factoring in the increase, the PLI scheme for solar cell and module manufacturing will be Rs 24,000 crore.
"We brought the PLI scheme (for solar cells and modules) worth Rs 4,500 crore. We invited bids and we got 54,500 MW manufacturing capacity of solar equipment. We asked the government to sanction Rs 19,000 crore more under the PLI, which was approved in-principle. Now we would have a PLI of Rs 24,000 crore. We would be exporting solar equipment," said the minister. At present, India's solar module manufacturing capacity stands at 8,800 MW, while solar cell manufacturing capacity is at 2,500 MW, Singh added.
Now that the financial outlay of the PLI scheme for domestic solar cell and module manufacturing is set to be increased, more shortlisted bidders, who were not declared successful in the first list, are likely to receive PLI under the scheme, sources aware of the matter told PSU Watch. "At least 13 more firms were shortlisted for receiving incentives under the PLI scheme, including Adani Infrastructure, FS India Solar Ventures, Coal India, Larsen and Toubro, ReNew Solar, Tata Power Solar, Waaree Energies and Vikram Solar. Now that the PLI scheme's outlay is set to be expanded, they are likely to receive its benefits as well," said one of the sources quoted above.
PSU Watch had reported on October 25 that Jindal India Solar Energy, Shirdi Sai Electricals, Reliance New Energy Solar Ltd, a subsidiary of Mukesh Ambani-led Reliance Industries Ltd (RIL) and Adani Infrastructure had emerged as the lowest bidders for the Rs 4,500-crore PLI scheme for solar PV manufacturing. The tender for the PLI scheme had been floated by Indian Renewable Energy Development Agency (IREDA) on June 11 this year.
The Cabinet had approved the Rs 4,500-crore PLI scheme for solar manufacturing in April this year. "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," the Ministry of New and Renewable Energy (MNRE) had said at the time. The PLI will be disbursed to the successful applicants annually for a period of five years.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)