The Cabinet, chaired by Prime Minister Narendra Modi, has approved the Ministry of New & Renewable Energy (MNRE) proposal to implement 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 4500 crore.

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.

Benefits outlay  

The scheme aims to create additional 10,000 MW capacity of integrated solar PV manufacturing plants. It is expected to drive direct investment of around Rs 17,200 crore in solar PV manufacturing projects. Demand of Rs 17,500 crore over 5 years for Balance of Materials and to employ about 30,000 people directly and indirect employment to about 120,000 people. This will help in achieving import substitution of around Rs17,500 crore every year and would further strengthen to Research & Development to achieve higher efficiency in solar PV modules.