Second PLI for solar modules to save forex costs worth INR 1.4 trillion

Called the Production Linked Incentive-II (PLI-II), the scheme has allocated INR 19,500 crore for manufacturing solar photovoltaic cells (PVs)

September 22, 2022

The PLI-II has been implemented to achieve a manufacturing capacity of 65 Giga Watt (GW) scale in High-Efficiency Solar PV Modules

This will increase exports and will bring in an investment of INR 94,000 crores

The first version (PLI-I) had an outlay of INR 4,500 crore for creating 8,700 MW of manufacturing capacity

The scheme will also generate the direct employment of 195,000 people, and indirect employment of 780,000 people

The second version of the Production Linked Incentive (PLI-II) scheme for manufacturing solar PVs worth INR 19,500 crore, is expected to save forex worth INR 1.4 trillion every year, according to Union Power Minister R K Singh. 

To achieve a manufacturing capacity of 65 Giga Watt (GW) scale in High-Efficiency Solar PV Modules, the Union Cabinet approved the implementation of the second version of the PLI. The first version (PLI-I) had an outlay of INR 4,500 crore for creating 8,700 MW of manufacturing capacity, developed with the intent to make India meet its domestic manufacturing requirement of solar modules. 

According to the union minister, this will result in a boost in exports and will bring in an investment of INR 94,000 crores. The scheme will also generate the direct employment of 195,000 people, and indirect employment of 780,000 people. 

Experts said that the government’s focus on research and development (R&D) will further enhance the efficiency of the solar PV modules and simultaneously indigenize technology and help in raw material selection. The announcement of the PLI-II is expected to project India as a strategic global partner in the energy transition.


Source: Business Standard

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