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PLI Scheme for solar modules invites interest from American manufacturers

Friday, 09 Apr 2021
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The Union Cabinet on 7 April 2021 approved a budgetary outlay of Rs 4,500 crore for the PLI Scheme which will run over five years. The incentive will be paid annually. The incentive will be given on half the capacity allocated. The Centre has sufficient funds to give incentive on a capacity of 5,000 MW.

Two US-based companies, First Solar and 1366 Technologies, have expressed interest in setting up manufacturing facilities in India under the incentive programme.

Three public-sector companies -- Coal India, Bharat Heavy Electricals (BHEL) and Central Electronics -- are also known to have expressed interest in the incentive scheme.

In a bid to push for research and development (R&D) spending by companies, the government will raise the incentive if the manufacturers improve the efficiency of their modules over one or more years.

To improve R&D in the industry, the government is also keen for participation of foreign players as well partnerships between local and foreign companies.

Any foreign manufacturer keen to set up a plant in India will get easy entry into the Approved List of Models and Manufacturers, even as foreign companies looking to export to India increasingly find the odds stacked against them.

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