Govt may extend solar PV modules to uplift domestic manufacturing industry

To increase domestic manufacturing capacity for solar photovoltaic modules (PV), Ministry of New and Renewable energy (MNRE) and the Power Ministry shared a few recommendations during the Union Budget 2022 seminar

March 8, 2022

The value of manufacturing capacity of PV cells in India is 2.5 gigawatts (GW) for solar cells and 16 GW for solar PV modules.

The capacity for manufacturing solar panels in the country is 11 GW

This scheme was introduced to ensure high efficiency for solar PV modules.

Approximately 8,737 MW capacity of letters of award (LoA) have been issued for the allocation of the amount.

To increase domestic manufacturing capacity for solar photovoltaic modules (PV) in the country, the MNRE has provided assistance to the entire value chain and ancillary industries. A sectoral group of seven ministries including power and MNRE discussed the initiatives the government has been undertaking in the energy and the resources sector. 

Domestic Manufacturing

MNRE also suggested that domestic manufacturing for solar modules needs to be extended throughout the value chain, including sub-components and materials, that will accelerate the growth of the ancillary industry and Micro, small and medium enterprises (MSMEs).

As per industry estimates, the manufacturing capacity of PV cells in India is 2.5 GW for solar cells and 16 GW for solar PV modules, and the capacity for manufacturing solar panels in the country is 11 GW as per the Approved List of Models and Manufactures (ALMM). 

Product-linked Initiative (PLI) schemes 

In April 2021, the MNRE proposed the PLI scheme with an outlay of INR. 4500 crore with provisions to install integrated manufacturing units of high-efficiency modules by providing PLI on sales. 

An LoA for a capacity of 8,737 MW has been issued and an additional PLI allocation of INR 19,500 crore has been announced for the manufacturing of high-efficiency models. 

Currently, India has an average potential of more than 1636 GW of renewable energy including large hydropower plants. The power generation from these sources has increased from 203,925.77 million units (MU) in FY17 to 297,546.03 MU in FY21. 

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