Result of Solar PLI tranche II shows 32% lower response than tranche I
POWER & RENEWABLE ENERGY

Result of Solar PLI tranche II shows 32% lower response than tranche I

Despite being 4.3 times larger, Solar Energy Corporation of India’s (SECI) tranche-II of the production-linked incentive (PLI) scheme received a total response that was 32% lower than tranche- I, according to renewable energy consultancy Bridge To India. “Tranche-II was 4.3 times larger than the first tranche, but in comparison, the overall response was 32% lower. Overall, it received 28% less applications than expected, but the fully integrated category saw the highest shortfall of 37%” according to the news statement. PLI will have a 48 GW manufacturing capacity overall.

“The bid outcome demonstrates the severe competitive disadvantage domestic producers currently face. We anticipate domestic polysilicon and cell capacity to reach only 30 GW and 42 GW, respectively, by December 2026, barely enough to meet domestic demand,” according to Vinay Rustagi, managing director of Bridge To India. This is despite significant trade restrictions and a variety of incentives. Sadly, he continued, both project developers and manufacturers can expect more market uncertainty.

A total of 11 companies received PLI awards totaling $1.7 billion under tranche-II to establish a combined manufacturing capacity of 39.6 GW. According to the consultancy, PLI was given to Reliance and Shirdi Sai for an additional 6 GW of fully integrated capacity each, bringing their combined allocated capacity to 10 GW each, the maximum allowed under the programme. With a 3.4 GW capacity, First Solar is the only other winner in the fully integrated category. In the wafer- module category, there are five winners, including Waaree, ReNew, Avaada, Grew, and JSW, with a combined capacity of 16.8 GW; in the cell-module category, there are three winners, including Tata Power, Vikram, and Amp, with a combined capacity of 7.4 GW.

The consultant noted that it is important to take note of the fact that project developers, who are concerned about the market disruption over the past two years and the strict import barriers, have contributed close to 50% of the PLI bid capacity. These developers are primarily looking to service their captive demand.

Despite being 4.3 times larger, Solar Energy Corporation of India’s (SECI) tranche-II of the production-linked incentive (PLI) scheme received a total response that was 32% lower than tranche- I, according to renewable energy consultancy Bridge To India. “Tranche-II was 4.3 times larger than the first tranche, but in comparison, the overall response was 32% lower. Overall, it received 28% less applications than expected, but the fully integrated category saw the highest shortfall of 37%” according to the news statement. PLI will have a 48 GW manufacturing capacity overall. “The bid outcome demonstrates the severe competitive disadvantage domestic producers currently face. We anticipate domestic polysilicon and cell capacity to reach only 30 GW and 42 GW, respectively, by December 2026, barely enough to meet domestic demand,” according to Vinay Rustagi, managing director of Bridge To India. This is despite significant trade restrictions and a variety of incentives. Sadly, he continued, both project developers and manufacturers can expect more market uncertainty. A total of 11 companies received PLI awards totaling $1.7 billion under tranche-II to establish a combined manufacturing capacity of 39.6 GW. According to the consultancy, PLI was given to Reliance and Shirdi Sai for an additional 6 GW of fully integrated capacity each, bringing their combined allocated capacity to 10 GW each, the maximum allowed under the programme. With a 3.4 GW capacity, First Solar is the only other winner in the fully integrated category. In the wafer- module category, there are five winners, including Waaree, ReNew, Avaada, Grew, and JSW, with a combined capacity of 16.8 GW; in the cell-module category, there are three winners, including Tata Power, Vikram, and Amp, with a combined capacity of 7.4 GW. The consultant noted that it is important to take note of the fact that project developers, who are concerned about the market disruption over the past two years and the strict import barriers, have contributed close to 50% of the PLI bid capacity. These developers are primarily looking to service their captive demand.

Related Stories

Gold Stories

Next Story
Real Estate

L&T Wins Mega Order for India’s Largest NVIDIA B300 AI Factory

Larsen & Toubro (L&T), through Vyoma.AI’s AI infrastructure subsidiary LTN Compute, has secured a mega order to develop what the company describes as India’s largest single-cluster AI infrastructure facility. The NVIDIA B300 AI Factory will support US-based AI cloud company Together AI’s platform for large-scale inference, fine-tuning and training workloads.The integrated AI Factory will be hosted at Vyoma.AI’s Chennai data centre campus and will have a capacity of 10,000 NVIDIA B300 GPUs. The platform will combine hyperscale data centre infrastructure, accelerated computing, h..

Next Story
Infrastructure Urban

Autodesk Elevates Nikhil Bagalkotkar to Lead AEC in India, SAARC

Autodesk has elevated Nikhil Bagalkotkar as Head – Architecture, Engineering and Construction (AEC), India and SAARC, with immediate effect.In his new role, Bagalkotkar will lead Autodesk's AEC business strategy across the region and drive adoption of the company's Design and Make platform. He will also focus on promoting digital design and construction technologies to help customers accelerate innovation and deliver more sustainable and resilient infrastructure.Bagalkotkar will be responsible for expanding Autodesk's AEC business, strengthening customer and partner engagement, and accelerat..

Next Story
Real Estate

Listed Developers' Pre-Sales Seen Rising 22.3 Per Cent in FY27

India's leading listed residential developers are expected to sustain strong sales momentum in FY27, with combined pre-sales of 11 major players projected to rise 22.3 per cent year-on-year, according to an analysis by ANAROCK Research & Advisory.Combined pre-sales of the developers are estimated to increase from Rs 1.49 trillion in FY26 to Rs 1.82 lakh crore in FY27. ANAROCK attributed the growth to sustained end-user demand, new project launches and strong execution despite higher property prices, construction costs and global uncertainties.Dr Prashant Thakur, Executive Director and Head..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement