The Union Cabinet has approved Production Linked Incentive Scheme on ‘National programme on High Efficiency Solar PV Modules’ for achieving manufacturing capacity of Giga Watt (GW) scale in high efficiency solar PV modules, Union minister Anurag Singh Thakur said on Wednesday. The minister also announced that the Cabinet has approved modifications in “Programme for Development of Semiconductors and Display Manufacturing Ecosystem”.
Second Tranche of PLI Scheme on High Efficiency Solar PV Modules Approved
In a meeting chaired by Prime Minister Narendra Modi, the Cabinet has approved the ministry of new and renewable energy’s proposal for implementation of the Production Linked Incentive Scheme (Tranche II) on ‘National programme on High Efficiency Solar PV Modules’, with an outlay of Rs.19,500 crore for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV Modules.
The Cabinet in a press note said that the scheme will bring direct investment of around Rs 94,000 crore. As an outcome, it is estimated that about 65,000 MW per annum manufacturing capacity of fully and partially integrated, solar PV modules would be installed. The additional boost is also expected to help the creation of manufacturing capacity for Balance of Materials like EVA, Solar glass, Backsheet, etc.
The second tranche of the PLI Scheme will also result in the direct employment of about 1,95,000 and indirect employment of around 7,80,000 people, the Cabinet said in the press release.
Under the scheme, Solar PV manufacturers will be selected through a transparent selection process. The PLI will be disbursed for five years post commissioning of solar PV manufacturing plants on sales of high efficiency solar PV modules from the domestic market will be incentivised.
“The national programme on High Efficiency Solar PV Modules aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India, and thus reduce import dependence in the area of Renewable Energy. It will strengthen the Atamnirbhar Bharat initiative and generate employment,” said the press note by the cabinet.
Cabinet Approves Modifications in “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India”
The Cabinet has also approved a host ofmodifications under the Programme for development of semiconductors and display manufacturing ecosystem in India.
Under modified programme, a uniform fiscal support of 50 per cent of project cost shall be provided across all technology nodes for setting up of Semiconductor Fabs. Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall also provide fiscal support of 50 per cent of Capital Expenditure in pari-passu mode for setting up of compound semiconductors / silicon photonics / sensors / Discrete semiconductors fabs and ATMP/OSAT.