Indian government approves second phase of solar manufacturing incentive scheme


From pv magazine India

The Indian Cabinet, chaired by Prime Minister Narendra Modi, has approved the Ministry of New & Renewable Energy’s proposal to implement the second phase of the Production Linked Incentive (PLI) scheme for gigawatt-scale manufacturing of high-efficiency solar PV modules. 

The government has allocated INR 19,500 crore (around $2.43 billion) for the second part of the program. “Solar PV manufacturers will be selected through a transparent selection process. PLI will be disbursed for five years post commissioning of solar PV manufacturing plants on sales of high-efficiency solar PV modules,” the government said in a statement.

The PLI scheme is expected to support the deployment of up to 65 GW of annual solar module manufacturing capacity, fully and partially integrated.

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India aims to install 175 GW of renewable energy generation capacity by next year, and 450 GW this decade. Based on techno-economic analysis, the country's Central Electricity Authority has projected an optimal clean power generation mix will require the nation to add 280 GW of solar capacity by 2029-30. That would mean around 25 GW of solar would need to be added annually. 

The government wants to ramp up Indian PV module manufacturing to support such growth. With the country currently hosting only 9-10 GW of solar module annual production capacity, and around 2.5 GW of cell fabrication facilities, India's solar industry is heavily reliant on imported cells and modules.


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