India approved incentive program for solar modules production

The Indian government has approved the Ministry of New and Renewable Energy’s (MNRE) $605 million proposal for the implementation of the Production Linked Incentive (PLI) program for the »National Program on High-Efficiency Solar PV Modules.« Aim is to achieve a gigawatt-scale manufacturing in the country.
According to the announcement, 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. 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, says the MNRE. PLI amount will increase with increased module efficiency and increased local value addition.
The Ministry expects additional 10,000 MW capacity of integrated solar PV manufacturing plants, direct investment of around INR 172 billion ($2.3 billion) in solar PV manufacturing projects, direct employment of about 30,000 and indirect employment of about 120,000 persons.
According to consultancy Mercom India, the solar industry »had welcomed the PLI program and believed the initiative could change the face of domestic manufacturing.« However, it had sought clarity on some issues regarding the criteria for utilizing the incentives.
The government would allocate around $19.61 billion for the ten critical sectors over the next five years, says Mercom. »Some of these critical sectors include high-efficiency solar PV modules, advanced chemistry cell battery, and automobiles and auto components.« The government will allocate INR 796.42 billion ($10.75 billion) for these three sectors in the next five years.

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