Govt to increase fund allocation for solar PLI scheme to Rs.240 bn

RK Singh, Minister of Power, New & Renewable Energy recently announced that the Centre will increase funding for the production-linked incentive (PLI) programme to produce domestic solar cells and modules to Rs.240 billion from the current Rs.45 billion.

The PLI programme for solar modules and cells received proposals for a 54.5 gw production capacity, which prompted the request for approval of additional funding. Solar equipment will also be shipped. According to the minister, solar module production capacity in the nation was 8.8 gw while cell production capacity was 2.5 gw.

Recently, the Indian Renewable Energy Development Agency (IREDA) released the list of successful bidders for installing production capacities for a minimum of 10 gw of vertically integrated high-efficiency solar modules under the PLI programme. A PLI totalling Rs.44.50 billion for a total capacity of 10,483 mw was granted. The 16 eligible bidders had requested a total PLI of Rs.229.94 billion.

Jindal India Solar Energy was granted a PLI of Rs.13.90 billion, and Shirdi Sai Electricals a PLI of Rs.18.75 billion, for 4 gw capacity each. 

Reliance New Energy Solar was granted a PLI of Rs.11.90 billion for 2,483 mw capacity. The Government said that it would view the PLI for the bidders on the waiting list if funds were improved for the programme. The PLI request under the waiting list amounts to Rs.185.39 billion.

In April 2021, the Union Cabinet passed the Rs. 45 billion PLI programme to enhance the domestic production capacity of solar PV modules. The programme plans to increase the 100 gw production capacity of integrated solar PV modules requiring a direct investment of Rs.172 billion. With the offered rise in allocation to Rs.240 billion, the quantum of investments and domestic production capacity envisaged under the PLI programme would improve.