The Union Cabinet has approved a Production Linked Incentive Scheme on the ‘National Program on High Efficiency Solar PV Modules’ to achieve Giga Watt (GW) scale manufacturing capacity in high efficiency solar PV modules, Union minister Anurag Singh Thakur announced on September 21. The minister also stated that the Cabinet has approved changes to the “Program for Development of Semiconductors and Display Manufacturing Ecosystem.”
Second Tranche of PLI Scheme on High Efficiency Solar PV Modules Approved
The Cabinet approved the proposal of the Ministry of New and Renewable Energy to implement the Production Linked Incentive Scheme (Tranche II) on ‘National Programme on High Efficiency Solar PV Modules’, with an outlay of Rs.19,500 crore, in a meeting presided over by Prime Minister Narendra Modi, for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV Modules.
The Cabinet in a press note said that the scheme will bring direct investment of around Rs 94,000 crore. As an outcome, it is estimated that about 65,000 MW per annum manufacturing capacity of fully and partially integrated, solar PV modules would be installed. The additional boost is also expected to help the creation of manufacturing capacity for Balance of Materials like EVA, Solar glass, Backsheet, etc.
According to the Cabinet’s press release, the second tranche of the PLI Scheme will also result in approximately 1,95,000 direct jobs and approximately 7,80,000 indirect jobs.
Solar PV manufacturers will be chosen under the scheme through a transparent selection process. The PLI will be paid out over a five-year period following the commissioning of solar PV manufacturing plants in exchange for sales of high-efficiency solar PV modules in the domestic market.
“The national programme on High Efficiency Solar PV Modules aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India, and thus reduce import dependence in the area of Renewable Energy. It will strengthen the Atamnirbhar Bharat initiative and generate employment,” said the press note by the cabinet.
Cabinet Approves Modifications
The Cabinet has also approved a slew of changes to the Programme for the Development of the Indian Semiconductor and Display Manufacturing Ecosystem.
Under the modified programme, uniform fiscal support of 50% of project cost will be provided across all technology nodes for the establishment of Semiconductor Fabs. Given the specialised nature and technology of compound semiconductors and advanced packaging, the modified programme will also provide fiscal support of 50% of Capital Expenditure in pari-passu mode for the establishment of compound semiconductors / silicon photonics / sensors / Discrete semiconductors fabs and ATMP / OSAT.
