Make In India: Modi Govt Approves Rs 4,500 Crore Scheme For Solar PV Modules, To Reduce Imports By Rs 17,500 Crore Every Year

Make In India: Modi Govt Approves Rs 4,500 Crore Scheme For Solar PV Modules, To Reduce Imports By Rs 17,500 Crore Every YearA shop floor of solar cells and panels with advance technology at Hind High Vacuum (HHV) Company Pvt Ltd in Bangalore, India. (Hemant Mishra/Mint via GettyImages)

The Ministry of New and Renewable Energy's proposal for implementation of the Production Linked Incentive (PLI) Scheme 'National Programme on High Efficiency Solar PV (Photovoltaic) Modules' was approved by the Union Cabinet on Wednesday (7 April).

With an outlay of Rs 4,500 crore, the scheme aims to achieve manufacturing capacity of Giga Watt (GW) scale in high efficiency solar PV modules.

This scheme is estimated to create an additional 10,000 MW capacity of integrated solar PV manufacturing plants with an investment of around Rs.17,200 crore.

Also, around 1.5 lakh employment opportunities are estimated to be created along with an import substitution of almost Rs 17,500 crore every year.

Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules.

The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity, the Ministry of New and Renewable Energy said in a statement.

Under the scheme, incentives will be disbursed for five years after commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules.

Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the incentive amount will increase with increased module efficiency and increased local value addition.