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DAILY NEWS ANALYSIS

  • 04 April, 2021

  • 5 Min Read

PLI scheme: 'National Programme on High Efficiency Solar PV Modules'

PLI scheme: 'National Programme on High-Efficiency Solar PV Modules

  • The Cabinet has approved the Ministry of New & Renewable Energy's proposal for the implementation of the Production Linked Incentive (PLI) Scheme 'National Programme on High-Efficiency Solar PV (Photo Voltic) Modules' for achieving manufacturing capacity of Giga Watt (GW) scale in high-efficiency solar PV modules with an outlay of Rs.4,500 crore.

Analysis of PLI Scheme on Solar PV Modules

  • Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules.
  • The National Programme on High-Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity.
  • It will also support the Atmanirbhar Bharat initiative.
  • Solar PV manufacturers will be selected through a transparent competitive bidding process.
  • PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high-efficiency solar PV modules.
  • Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market.
  • Thus, the PLI amount will increase with increased module efficiency and increased local value addition.

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

  • Additional 10,000 MW capacity of integrated solar PV manufacturing plants,
  • Direct investment of around Rs.17,200 crore in solar PV manufacturing projects
  • The demand of Rs.17,500 crore over 5 years for 'Balance of Materials',
  • Direct employment of about 30,000 and Indirect employment of about1,20,000 persons,
  • Import substitution of around Rs.17,500 crore every year, and
  • The impetus to Research & Development to achieve higher efficiency in solar PV modules.

Source: PIB


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