The Rs 4,500-crore Performance Linked Incentive (PLI) scheme for solar manufacturing has not met industry expectations since domestic manufacturers could end up getting barely 3-5 per cent of the sale value of their solar cells and modules through this scheme.
With the government claiming record clean energy capacity of 450 GW by 2030, the scheme aims to support end-to-end indigenous solar power capacity in the country. “Industry calculations indicate that in terms of capital expenditure, PLI would be in the range of 15-25 per cent. The incentive on the capex will come after five years. The incentive on sale is variable as no one knows how much they will sell. For foreign investors, the incentive is further reduced due to customs duty,” said a senior executive of a leading solar company.
The Union Cabinet last month approved the proposal of Ministry of New and Renewable Energy (MNRE) for ramping up domestic manufacturing of solar photovoltaic (PV) panels under the Centre’s PLI scheme. The proposed scheme is aimed at creating an additional 10,000 MW capacity of integrated solar PV manufacturing plants in the country.
According to the guidelines issued by MNRE, the manufacturers will be selected through a transparent competitive bidding process and PLI will be disbursed for five years post the commissioning of the manufacturing plants, on sales of high efficiency solar PV modules.