India Expected to Make Impressive Progress on Solar PLI Scheme

In order to boost domestic solar manufacturing in India, the government implemented the PLI (or production linked incentive) scheme. It had planned to offer Rs 4,500 crore for solar modules under the scheme. The incentive is to be available to Indian as well as foreign companies manufacturing in India. The scheme is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules. Recently, the government has committed to enhance funding under PLI for solar manufacturing to Rs 24,000 crore. With this enhancement of funding, the domestic manufacturing capacity is further expected to increase.

After the government invited bids, it received bids worth 54,500 MW for manufacturing capacity of solar equipment. RIL, Adani, and 17 other companies bid for solar manufacturing under the PLI scheme. Now, Jindal India Solar, Shirdi Sai Electricals, Reliance & Adani Infrastructure have emerged as the successful bidders for the PLI scheme for solar PV manufacturing, with Jindal Solar emerging as the lowest bidder quoting Rs. 1,390 crore incentive. These solar players have proposed to establish 4,000 MW capacity of solar PV modules. The PLI will be disbursed to the successful applicants annually over a five-year period. The applicants are required to set up either a brownfield or greenfield (and not a mix of the two) manufacturing facility for the entire capacity allotted under the scheme.

The solar module manufacturing capacity in the country is 8,800 MW while the solar cell manufacturing capacity is 2,500 MW. With the PLI scheme, this manufacturing capacity is expected to witness a boost to the extent of even becoming an exporting nation.

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