Budget 2022 allocates Rs 195 bn PLI incentive for solar module production

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Budget 2022 allocates Rs 195 bn PLI incentive for solar module production

Budget 2022 allocates Rs 195 bn PLI incentive for solar module production

Industry News
Feb 01,22

With focus on circular economy, Budget 2022 tables proposal to co-fire 5-7% biomass pellets in thermal power plants, with expected CO2 savings of 38 mmt. It also announced four pilot projects for coal gasification and conversion of coal into chemicals.

Budget 2022 allocates Rs 195 bn PLI incentive for solar module production

New Delhi

The government aims to attain the vision of promoting energy transition and climate action during the Amrit kaal. While presenting the Union Budget 2022-23 in Parliament, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, laid emphasis on this vision and put the same as one of the important priorities of the country for moving forward.

Ã¢â‚¬Å“The risks of climate change are the strongest negative externalities that affect India and other countriesÃ¢â‚¬Â, the Union Minister said while addressing the Parliament. She re-iterated the low carbon development strategy, announced by the Prime Minister, as an important reflection of the GovernmentÃ¢â‚¬â„¢s strong commitment towards sustainable development. This strategy opens up huge employment opportunities and the budget proposes several near-term and long-term actions in this regard.

The Finance Minister has proposed an additional allocation of Rs 195 billion for Production Linked Incentive (PLI) for manufacture of high efficiency solar modules. This will also ensure the domestic manufacturing required for achieving the ambitious goal of 280 GW of installed solar capacity by 2030.

Circular Economy

Highlighting the importance of Circular Economy, Nirmala Sitharaman said, Ã¢â‚¬Å“The Circular Economy transition is expected to help in productivity enhancement as well as creating large opportunities for new businesses and jobs. The focus now will be on addressing important cross cutting issues of infrastructure, reverse logistics, technology up-gradation and integration with informal sector. This will be supported by active public policies covering regulations, extended producersÃ¢â‚¬â„¢ responsibilities framework and innovation facilitation.Ã¢â‚¬Â

Co-firing of five to seven per cent biomass pellets in thermal power plants has been proposed by Union Minister that will result in CO2 savings of 38 MMT annually. Ã¢â‚¬Å“This will also provide extra income to farmers and job opportunities to locals and help avoid stubble burning in agriculture fields,Ã¢â‚¬Â the Finance Minister added.

Four pilot projects for coal gasification and conversion of coal into chemicals required for the industry have also been proposed to evolve technical and financial viability.

Energy efficiency and saving measures through setting up of Energy Service Company (ESCO) business model in large commercial buildings will also facilitate capacity building and awareness for energy audits, performance contracts, and common measurement & verification protocol.