PLI Scheme for Solar Manufacturing.

 

Ind-Ra estimates that the allocation of INR 45 billion towards the solar modules manufacturing industry by the Ministry of New and Renewable Energy (MNRE) can benefit the sales of 20 GW from the capacity developed under the under PLI scheme across the five-year period, assuming 100% localization. Also, the scheme can promote an additional 8-12GW annual solar cell/module manufacturing capacity in India.This estimate assumes the base PLI rate of INR 2.25 per watt power and entirely greenfield expansion.PLI Scheme for Solar Manufacturing.The PLI scheme was started for good but,it can address only a fraction of the demands. India has set a goal to install 280 GW of solar power plants by FY30 out of which about 240 GW is under pipeline or yet to be achieved. Hence, only 8-13 percent of this planned requirement is going to benefit directly from this PLI scheme till FY30, apart from improving the domestic manufacturing capacity.The report estimated the benefits based on actual performance and concluded that “The PLI rate will defer with the efficiency and temperature gradient quotient claimed at the time of bidding and will vary between INR2.25 and 3.75 per watt power,benefitting players to invest in new technology. Also, more benefits will be available with the increased localization of raw materials.The bidders will in no case be eligible for any PLI over and above the requirement quoted by them for a particular year.Bidders will be selected based on a pointer system-based grading for the extent of backward integration and manufacturing capacity.