With ₹19,500-crore PLI plan, sun shines on solar cell units

• The Union Cabinet recently cleared a ₹19,500-crore scheme to incentivise manufacturing of domestic solar cell modules to reduce the industry’s reliance on China-made panels.

Production Linked incentives (PLI)

• Bidders for projects would be given PLI to set up manufacturing facilities for the entire production cycle of modules like:
• making the polysilicon cells, ingots, wafers and panels
• assembling modules used to produce electricity
• Disbursed to firms after they set up their manufacturing units and the money disbursed over five years.
• MNRE, the nodal body for administering the programme, estimates manufacturing capacity worth 65,000 MW of fully and partially integrated, solar PV modules to be installed over five years.
• India has committed to a target of installing 5,00,000 MW of electricity from non-fossil fuel-based sources by 2030.
• It translates to 2,80,000 – 3,00,000 MW from solar electricity alone.
• Through this, India can achieve 70-80 GW of capacity which would take care of our domestic requirements as well as exports.

Prelims Takeaway

• PLI
• Polysilicon cells