Additional allocation for solar PLI scheme announced

Finance minister Nirmala Sitharaman in the Union Budget has announced an additional allocation towards the solar production-linked incentive (PLI) scheme.

“Additional allocation of Rs 19,500 crore for PLI for mfg of high-efficiency modules with a priority to fully integrate manufacturing units from polysilicon to solar PV modules will be made,” the FM said.



This move is to facilitate domestic manufacturing for the ambitious goal of 280 gigawatts of installed solar capacity by 2030.

India Ratings and Research (Ind-Ra) last year in a note had said the solar production-linked Incentive (PLI) scheme will benefit 8-13 per cent of the photovoltaic energy plant requirement till 2029-30, and aid 20 gigawatt (GW) capacity development in the next five years.

The Central Government so far has committed Rs.1.97 lakh crore and recently, PLI in the 14th sector - drones and drone components has been included with an additional layout of Rs. 120 crore.

The initial 13 sectors are Electronic/Technology Products, Medical devices, Drug intermediaries and APIs, mobile manufacturing and specified electronic components, pharmaceuticals drugs, telecom & networking products, telecommunications, food products, white goods (ACs & LED), high-efficiency solar PV modules, automobiles & auto components, advance chemistry cell (ACC) battery, textile products: man-made fabrics segment and technical textiles and specialty steel.