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Union Power Minister RK Singh on Tuesday said production linked incentive (PLI) scheme for solar cells and modules will aid the creation of 40-45 GW of additional solar equipment manufacturing capacity in the country.
It is proposed in the General Budget presented in Lok Sabha on Tuesday that the funding under the PLI scheme for domestic solar cells and module manufacturing will be increased to Rs 24,000 crore from the existing Rs 4,500 crore.
“This is a big scheme and aid to create production capacity of 40GW to 45GW of solar equipment in India, which ranges from polysilicon to modules,” Singh told reporters here.
In her budget speech Finance Minister Nirmala Sitharaman stated that for facilitating domestic manufacturing for the ambitious goal of 280 GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for PLI scheme for manufacturing of high efficiency (solar) modules with a priority of fully integrate manufacturing units for polysilicon to solar PV modules will be made.
In April 2021, the Union Cabinet approved a Rs 4,500 crore production linked incentive (PLI) scheme to boost the domestic manufacturing capacity of solar PV modules.
When the scheme was approved in April 2021, it was aimed at adding a 10,000 MW manufacturing capacity of integrated solar PV modules, entailing a direct investment of Rs 17,200 crore at present.
About raising import duty on solar modules from 20 per cent to 40 per cent, Singh stated, “We will use make in India solar modules and therefore 40 per cent customs duty will be imposed from April 1, 2022”.
The Budget document has also proposed to hike import duty on solar cells to 25 per cent from 20 per cent from April 1, 2022.
The minister also said, “ The government has also provided for green bonds for investment in clean energy projects like green hydrogen”.
Sitharaman also proposed that as a part of the government’s overall market borrowings in 2022-23, sovereign Green Bonds will be issued for mobilising resources for green infrastructure.
The proceeds will be deployed in public sector projects, which help in reducing the carbon intensity of the economy.
She also talked about co-firing five to seven per cent biomass pellets in thermal power plants, resulting in CO2 savings of 38 MMT (million metric tonnes) annually.
Singh said that the government will also bring out a battery swapping policy and make green mobility zones.
He explained that there could be such zones in overcrowded areas like Connaught Place or Sarojini Nagar.
The minister also lauded the provision of blending of biomass pellets with fuel in thermal power plants.
Whatever was required for energy transition, has been provided in this Budget, the minister said.