Cabinet Approves Second Tranche of Rs.19,500 Crore Solar PLI

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The Union Cabinet on September 21 approved the second tranche of the performance-linked incentive (PLI) scheme for the development of solar PV modules, with an outlay of Rs 19,500 crore. The first tranche of Solar PLI for Rs 4,500 crore was approved last year.


The PLI for the “National Programme on High-Efficiency Solar PV Modules” is aimed at achieving a manufacturing capacity of “Giga Watt (GW)-scale in high-efficiency solar PV modules”, Union Minister Anurag Thakur said in a press briefing following the Cabinet meeting.


“A provision of Rs 19, 500 crore has been made,” Thakur said, adding that the government wants to create an “ecosystem for manufacturing of high-efficiency solar PV modules”.

The Centre, in an official release, noted that the scheme will bring “direct investment of around Rs 94,000 crore”, and lead to direct employment of about 1,95,000 persons and indirect employment of around 7,80,000.

The solar PV manufacturers, who will be benefited from the PLI scheme, will be selected through a transparent selection process, the government said.

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The incentive will be disbursed for five years post commissioning of solar PV manufacturing plants “on sales of high-efficiency solar PV modules from the domestic market will be incentivised”, it added.

It is estimated that about a total of 65 GW manufacturing capacity will be added in the next 18 – 36 months which will include 29 GW of Poly Silicon to Module Production, 18 GW of wafer to modules Production and 18 GW of cells to modules production.

The scheme will lead to “import substitution of approximately Rs.1.37 lakh crore”, and also provide an impetus to research and development to achieve higher efficiencies in solar PV Modules, the government added.

The outcomes/benefits expected from the scheme are as follows:

  1. It is estimated that about 65,000 MW per annum manufacturing capacity of fully and partially integrated, solar PV modules would be installed.
  2. The scheme will bring direct investment of around Rs.94,000 crore.
  3. Creation of manufacturing capacity for Balance of Materials like EVA, Solar glass, Backsheet, etc.
  4. Direct employment of about 1,95,000 and indirect employment of around 7,80,000 persons.
  5. Import substitution of approximately Rs.1.37 lakh crore.
  6. Impetus to Research and Development to achieve higher efficiencies in Solar PV Modules.
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