The implementation of the Production Linked Incentive Scheme related to “National Programme on High Efficiency Solar PV Modules”, has received consent from the President of India, according to a recent communication by Union Ministry for New & Renewable (MNRE).
The aim of the scheme is to promote manufacturing of high efficiency solar PV modules in India and thus reduce import dependence in the area of renewable energy.
The main objectives of the scheme are:
- To build up solar PV manufacturing capacity of high efficiency modules
- To bring cutting edge technology to India for manufacturing high efficiency modules. The scheme will be technology agnostic in that it will allow all technologies. However, technologies which result in better module performance will be incentivized
- To promote setting up of integrated plants for better quality control and competitiveness
- To develop an ecosystem for sourcing of local material in solar manufacturing
- Employment generation and technological self-sufficiency
Here are some highlights of the guidelines:
- The PLI scheme will be implemented by Indian Renewable Energy Development Agency (IREDA).
- Beneficiaries of the PLI scheme will be selected through a transparent bidding process. Applications will be shortlisted after consideration of the following parameters: extent of integration, manufacturing capacity, and minimum module performance.
- The scheme will be applicable to both greenfield and brownfield solar PV manufacturing projects.
- The guidelines have also provided extensive details on the calculation of the production linked incentive.
- Though a manufacturer can bid for any capacity (calculated in mw per year), the maximum capacity that can be awarded, to one bidder under the PLI scheme, is 50 per cent of the bid capacity (capacity which he has promised to set up in his bid) or 2,000 mw, whichever is less, to accommodate at least three manufacturers under the overall envelope of Rs.4,500 crore.
- A manufacturer would get a maximum period of three years to start production of the solar PV equipment for which he has sought incentive/assistance under the scheme.
To view the official guidelines, as available on MNRE’s website, click here.
Background
On November 11, 2020, the Cabinet approved introduction of Production Linked Incentive (PLI) Scheme for 10 key sectors, for enhancing India’s manufacturing capabilities and exports under Atmanirbhar Bharat initiative.
One of the 10 sectors for which introduction of PLI has been approved by the Cabinet is ‘High Efficiency Solar PV Modules’ for which Ministry of New & Renewable Energy (MNRE) has been designated as the implementing Ministry. The financial outlay for PLI for ‘High Efficiency Solar PV Modules’, as approved by the Cabinet and communicated by NITI Aayog’s dated November 20, 2020, over a five-year period, is Rs.4,500 crore.
(Featured photograph, courtesy of Tata Power Solar, is for representation only)
