The Ministry of New and Renewable Energy (MNRE) has issued guidelines for the Production Linked Incentive (PLI) Scheme to promote manufacturing of high efficiency solar PV modules in India.
For this, the Union Cabinet on 11 November 2020 had approved and allocated an amount of Rs 4,500 crore to be spent over a period of five years.
The PLI Scheme will be implemented by MNRE through the Indian Renewable Energy Development Agency (IREDA) as Implementing Agency. The beneficiaries will be selected through a transparent bidding process.
Preference will be given to manufacturers who set up higher capacity plants. However, in order to qualify for the bid, the applicant manufacturer will have to undertake to set up a manufacturing plant of minimum 1,000 MW capacity.
The Scheme is also aimed at promoting the setting up of integrated plants for better quality control and competitiveness, to develop an ecosystem for sourcing of local material in solar manufacturing, generate employment and reducing import dependence.
The guidelines further stated that greenfield new solar PV module manufacturing units will be eligible for PLI and brownfield projects will also be allowed to participate under the eligibility criteria.
Though a manufacturer can bid for any MW capacity, the maximum capacity that can be awarded to one bidder under the PLI Scheme remains 50 percent of the bid capacity or 2,000 MW, whichever is less, to accommodate at least three manufacturers under the overall envelope of Rs 4,500 crore.
The manufacturing units sanctioned under the programme will be eligible for getting PLI on the annual basis on sales of high efficiency solar PV modules for five years from commissioning or five years from scheduled commissioning date.
