Union Budget 2022: PLI for domestic solar cells, modules manufacturing enhanced to Rs 24,000 crore

The Union Cabinet, earlier in April 2021, approved a Rs 4,500 crore production linked incentive (PLI) scheme to boost the domestic manufacturing capacity of solar PV modules.

Published: 01st February 2022 02:54 PM  |   Last Updated: 01st February 2022 02:54 PM   |  A+A-

Official stands under an atrium roof fitted with glass solar cells at The Energy and Resources Institute in Gurgaon, India.

Official stands under an atrium roof fitted with glass solar cells at The Energy and Resources Institute in Gurgaon, India. Image used for representational purposes. (Photo | AP)

By PTI

NEW DELHI: Finance Minister Nirmala Sitharaman on Tuesday proposed enhancing the funding under the PLI scheme for domestic solar cells and module manufacturing to Rs 24,000 crore from the existing Rs 4,500 crore to make India an exporting nation.

"For facilitating domestic manufacturing for the ambitious goal of 280GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for PLI scheme for manufacturing of high efficiency (solar) modules with the priority of fully integrate manufacturing units for polysilicon to solar PV modules will be made," Sitharaman said in her Budget speech in the Lok Sabha.

In April 2021, the Union Cabinet approved a Rs 4,500 crore production linked incentive (PLI) scheme to boost the domestic manufacturing capacity of solar PV modules.

The scheme was aimed at adding a 10,000 MW manufacturing capacity of integrated solar PV modules entailing a direct investment of Rs 17,200 crore at present (existing).

With the increase in allocation to Rs 24,000 crore, the quantum of investments and domestic manufacturing capacity envisaged under the PLI scheme would further increase.

The PLI scheme -- National Programme on High-Efficiency Solar PV Modules -- approved by the Union Cabinet, was aimed at reducing import dependence in a strategic sector like electricity.

Under the scheme, solar PV manufacturers will be selected through a transparent competitive bidding process.

The PLI will be disbursed for five 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.

The PLI amount increases with increased module efficiency and increased local value addition.

In November 2021, Power and New & Renewable Energy Minister R K Singh had told PTI, "We brought the PLI scheme (for solar cells and modules) worth Rs 4,500 crore. We invited bids and we got 54,500 MW manufacturing capacity of solar equipment. We asked the government to sanction Rs 19,000 crore more under the PLI, which was approved (in-principle). Now we would have a PLI of Rs 24,000 crore. We would be exporting solar equipment."

In her Budget speech on Tuesday, Sitharaman stated that the risks of climate change are the strongest negative externalities that affect India and other countries.

She repeated the Prime Minister's quote during the COP26 summit in Glasgow last November, where he had said, "what is needed today is mindful and deliberated utilisation instead of mindless destructive consumption."

"The low carbon development strategy as enunciated in the ‘panchamrit' that he (PM) announced is an important reflection of our government's strong commitment towards sustainable development," she said.

This strategy opens up huge employment opportunities and will take the country on a sustainable development path.

This budget proposes several near-term and long-term actions accordingly, she added.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp