The Union Ministry has approved the Production Linked Incentive (PLI) Scheme on highly efficient Solar PV modules for achieving manufacturing capacity on a Giga Watt (GW) scale.
The government has approved the grant worth Rs 19,500 crore for domestic manufacturing.
This announcement of the PLI scheme is a boon to the solar manufacturing industry in India to form Giga factories with a clear focus on manufacturing High-Efficiency Solar PV Modules.
India has resolved not to compromise on its energy security, keeping in view the high strain on the overall global food & energy value chain because of climate change and very recent geo-political tension in Europe/USA & Russia/China. Upscaling the domestic capacity is quintessential for a resilient and self-sufficient INDIA.
In alignment with Prime Minister Narendra Modi's vision, it has been our priority and commitment to contribute towards building an Aatmanirbhar Bharat as far as the manufacturing of India's solar modules/cells is concerned.
All India solar industry association (AISIA) is committed to adding more and more solar manufacturing capacities on Indian soil to make our country an Aatmanirbhar Bharat.
The Central policies on imposing 40% BCD on imported modules /cells, PLI schemes, ALMM, and SPECS have laid a firm foundation for domestic manufacturers to scale up capacity addition.
The actual installed capacity, as on September 2022, stands at 30000 MWs (Almost 10,000 MWs capacity to be approved under ALMM).
In the next six months, another 10000 MWs of solar domestic modules manufacturing capacity would be in place, taking overall capacity to approximately 40000 MWs by March 31, 2023.
As per the available information and conducive government policies, there will be an addition of another 74,000 MWs by the PLI trench 1 and 1, which will take the total capacity to approximately 114000 MW.
The new PLI announced today will give a boost to higher capacity addition on the upstream side of the value chain, i.e., Poly silica ingots wafers, etc. This shall bring much-needed technology innovation into the realm of our very own energy value chain.
Overall, this will march our nation towards achieving the target of becoming a desired global manufacturing hub for high-efficiency solar panels.
Domestic solar manufacturers are operating in an environment where indigenous module production is rapidly increasing without much demand.
This brings good competition in prices and services to give better ROI to the end customers. Higher Manufacturing capacity over demand will continue in the coming years.
This was stated in a media release.
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