According to ICRA, the Production Linked Incentive (PLI) scheme for the renewable energy sector is anticipated to attract investments worth Rs 3.4 trillion over the next four years. The scheme aims to boost private sector capital expenditure (capex) and accelerate the development of renewable energy infrastructure in India.

Under the PLI scheme, incentives will be provided to eligible manufacturers of solar PV modules, battery storage, and other renewable energy components based on their incremental sales. This initiative is expected to drive substantial investments in manufacturing facilities and contribute to the country's renewable energy goals.

ICRA highlights that the PLI scheme could significantly enhance India's manufacturing capabilities in the renewable energy sector, reducing dependence on imports and fostering domestic production. The scheme's implementation is timely, aligning with India's ambitions to expand its renewable energy capacity and achieve its climate commitments.

The private sector's increased capex is crucial for scaling up renewable energy infrastructure, meeting growing energy demand, and promoting sustainable development. The PLI scheme is designed to incentivize industry participation and spur technological advancements in renewable energy technologies.

The forecasted investments under the PLI scheme underscore its potential to reshape India's renewable energy landscape, driving economic growth, creating employment opportunities, and advancing environmental sustainability. As stakeholders gear up to capitalise on the incentives offered, the scheme is expected to play a pivotal role in India's transition towards a cleaner and more resilient energy future.