Government upgrades PLI for home solar cells and module manufacturing to Rs 24,000 Crore
New Delhi, Feb 01 (PTI) Finance Minister Nirmala Sitharaman on Tuesday proposed to increase funding under the PLI scheme for manufacturing domestic solar cells and modules to Rs 24,000 crore from Rs 4,500 crore existing to make India an exporting nation.
‘To facilitate domestic manufacturing for the ambitious target of 280 GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for the PLI scheme for the manufacture of high-efficiency (solar) modules with the priority of ‘fully integrating polysilicon manufacturing units with solar PV modules will be done,’ Sitharaman said in his budget speech at the Lok Sabha.
In April 2021, the Cabinet of the Union approved a Production Linked Incentives (PLI) scheme of Rs 4,500 crore to increase the domestic manufacturing capacity of solar PV modules.
The scheme aimed to add 10,000 MW manufacturing capacity of integrated solar PV modules resulting in a direct investment of Rs 17,200 crore at present (existing).
With the increase in the allocation to Rs 24,000 crore, the amount of investment and domestic manufacturing capacity envisaged under the PLI scheme would further increase.
The PLI program – National Program on High Efficiency Photovoltaic Solar Modules – approved by the Cabinet of the Union, aimed to reduce dependence on imports in a strategic sector such as electricity.
Under this program, solar photovoltaic panel manufacturers will be selected through a transparent bidding process. The PLI will be disbursed for five years after the commissioning of the photovoltaic solar panel manufacturing plants, on the sales of high-efficiency photovoltaic solar modules.
Manufacturers will be rewarded for the higher yields of solar PV modules and also for sourcing the material in the domestic market. The amount of the PLI increases with the increased efficiency of the module and the increase in the local added value.
In November 2021, the Minister of Energy and New and Renewable Energy, RK Singh, told PTI, “We have brought the PLI scheme (for solar cells and modules) worth Rs 4,500 crore. We launched a call for tenders and we obtained a solar equipment manufacturing capacity of 54,500 MW. We asked the government to sanction Rs 19,000 crore more under the PLI, which was approved (in principle). Now we would have a PLI of Rs 24,000 crore. We would export solar equipment.
In his budget speech on Tuesday, Sitharaman said climate change risks are the strongest negative externalities affecting India and other countries.
She repeated the Prime Minister’s quote from the COP26 summit in Glasgow last November, where he said: “What we need today is conscious and deliberate use instead of senseless destructive consumption”.
“The low-carbon development strategy as set out in the ‘panchamrit’ which he (the prime minister) announced is an important reflection of our government’s strong commitment to sustainable development,” he said. she declared.
This strategy opens up huge employment opportunities and will lead the country on the path to sustainable development.
This budget proposes several short-term and long-term actions accordingly, she added.
(This article was published from a news feed with no text changes. Only the title has been changed.)