Cabinet approves second tranche of solar PLI worth Rs 195 billion

The Cabinet has approved the Rs 195 billion proposal of the Ministry of New and Renewable Energy (MNRE) for the implementation of second tranche of the production-linked incentive (PLI) scheme for solar equipment manufacturing.

This is part of ‘National programme on High Efficiency Solar PV Modules’ for achieving manufacturing capacity of giga watt (GW) scale in high efficiency solar photovoltaic (PV) modules. The scheme will bring direct investment of around Rs 940 billion and will lead to creation of manufacturing capacity for allied equipment in the solar manufacturing chain. Further, it will lead to import substitution of approximately Rs 1.37 trillion. Solar PV manufacturers will be selected through a transparent selection process. 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.