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

Minister of Power RK Singh told the media that the centre will increase funding for the production linked incentive (PLI) program for producing domestic solar cells and modules to Rs 240 billion from the current Rs 45 billion.

The PLI program for solar modules and cells received proposals for a 54.5 GW production capacity.

They asked the government to approve Rs 190 billion more under the PLI, which was sanctioned in principle. They would have a PLI of Rs 240 billion. They would be shipping solar equipment.

The Minister said that the solar module production capacity in the nation was 8.8 GW while the 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 program. 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 a 2,483 MW capacity.

The government said that it would view the PLI for the bidders on the waiting list if the funds were improved for the program. 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 program to enhance the domestic production capacity of solar PV modules.

The PLI program plans at increasing 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 program would improve.

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