The Union Cabinet, chaired by Prime Minister, Shri Narendra Modi, has approved the Ministry of New & Renewable Energy’s proposal for implementation of the Production Linked Incentive scheme (PLI) (Tranche II) on ‘National Programme on High Efficiency Solar PV Modules’, with an outlay of Rs 19,500 crore for achieving manufacturing capacity of GW scale in High Efficiency Solar PV Modules.

The national programme on High Efficiency Solar PV Modules aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India, and thus reduce import dependence in the area of Renewable Energy. It will strengthen the Atamnirbhar Bharat initiative and generate employment.

Solar PV manufacturers will be selected through a transparent selection process. PLI will be disbursed for five years post commissioning of solar PV manufacturing plants on sales of high efficiency solar PV modules from the domestic market will be incentivised.

It is estimated that about 65,000 MW per annum manufacturing capacity of fully and partially integrated solar PV modules would be installed.

The scheme will bring direct investment of around Rs 94,000 crore and creation of manufacturing capacity for balance of materials like EVA, solar glass, backsheet, etc.

The scheme will see generation of direct employment of about 1,95,000 and indirect employment of around 7,80,000 persons.

It will be import substitution of approximately Rs.1.37 lakh crore and impetus to research and development to achieve higher efficiencies in Solar PV Modules.