IREDA invites applications for solar PV module manufacturing units under PLI scheme

• The last date for application is June 30 and the bids will open on July 1

• The minimum net worth for setting up solar cell and module manufacturing capacity should be Rs 85 crore/GW at the time of application, said IREDA

New Delhi: State-run Indian Renewable Energy Development Agency (IREDA) has invited applications for setting up manufacturing facilities for high-efficiency solar photovoltaic (PV) modules under the Production-linked Incentive (PLI) scheme. According to a document released by IREDA in this regard on Tuesday, the last date for application is June 30 and the bids will open on July 1. "The applicants are required to set up either a brownfield or greenfield manufacturing facility for the entire capacity allotted under the scheme and are not allowed to set up a mix of both kinds of facilities allotted under the scheme," it said.

Solar PV manufacturing: How to apply for incentives under PLI scheme?

IREDA said in the document, "Applicants shall be required to submit their response by indicating the yearly PLI values based on their expected sales of Solar PV modules in MW, base case PLI (Rs/Watt) for which their product is eligible, expected local value addition and tapering factor as per the scheme guidelines." Manufacturers setting up any solar PV technology-based production facilities will be eligible for applying for the incentive assistance under this scheme, provided the manufacturing capacities it sets up achieves the minimum level of integration of cells and modules, the minimum manufacturing capacity requirements and the minimum threshold module performance parameters of module efficiency and modules' temperature coefficient of Pmax, as per the scheme guidelines.

"Manufacturing units which have availed any benefit under the MNRE's tender(Solar PV manufacturing linked with setting up solar power plant) or SIPS/ M-SIPS programme of Ministry of Electronics & Information Technology (MEITY) will not be eligible for benefits under this programme," said IREDA.

Applicants can form SPV within 90 days of receiving LoA

Applicants may form a Special Purpose Vehicle (SPV) for setting up of the manufacturing facility after the issue of Letter of Award (LoA) by IREDA. However, such SPV should be formed within 90 days from the issue of the LoA. In case of any delay beyond 90 days for the formation of the SPV, the Letter of Award issued would be withdrawn and capacity would be allocated to entities in the waiting list, said IREDA.

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Net worth: Who can apply?

According to the scheme guidelines released by IREDA, the minimum net worth for setting up solar cell and module manufacturing capacity should be Rs 85 crore/GW at the time of application. For ingot-wafer, cell and module manufacturing capacity, it should be Rs 140 crore/GW and for polysilicon, ingot-wafer, cell and module, the figure should be Rs 220 crore/GW at the time of application. The net worth to be established within 90 days of receiving the LoA will be higher.

The backdrop

On November 11, 2020, the Cabinet approved introduction of the PLI scheme for 10 key sectors, for enhancing India's manufacturing capabilities and exports under Atmanirbhar Bharat initiative. One of these sectors was high-efficiency solar modules for which the Cabinet approved a financial outlay Rs 4,500 crore over a five-year period.

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