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Cabinet approves second tranche of PLI scheme for solar PV modules; Rs 19,500 crore allocated

The Cabinet has also approved changes to the PLI scheme for semiconductor and display manufacturing, with the government now offering fiscal support of 50 percent, instead of 30 percent, for setting up of semiconductor ATMP / OSAT facilities in India.

September 21, 2022 / 04:31 PM IST
I&B Minister Anurag Thakur briefing the press, after the Union Cabinet meeting on Sept 21 (Image: PIB)

I&B Minister Anurag Thakur briefing the press, after the Union Cabinet meeting on Sept 21 (Image: PIB)

The Union Cabinet on September 21 approved the second tranche of the performance-linked incentive (PLI) scheme for the development of solar PV modules, with an outlay of Rs 19,500 crore.

The PLI for the "National Programme on High-Efficiency Solar PV Modules" is aimed at achieving a manufacturing capacity of "Giga Watt (GW)-scale in high-efficiency solar PV modules", Union Minister Anurag Thakur said in a press briefing following the Cabinet meeting.

"A provision of Rs 19, 500 crore has been made," Thakur said, adding that the government wants to create an "ecosystem for manufacturing of high-efficiency solar PV modules".

The Centre, in an official release, noted that the scheme will bring "direct investment of around Rs 94,000 crore", and lead to direct employment of about 1,95,000 persons and indirect employment of around 7,80,000.

Also Read | Decoding PLI: Energiser for self-sufficiency in solar power

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The solar PV manufacturers, who will be benefited from the PLI scheme, will be selected through a transparent selection process, the government said.

The incentive 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", it added.

It is estimated that about 65,000 MW per annum manufacturing capacity of fully and partially integrated solar PV modules would be installed, the release further noted.

The scheme will lead to "import substitution of approximately Rs.1.37 lakh crore", and also provide an impetus to research and development to achieve higher efficiencies in solar PV Modules, the government added.

PLI scheme for semiconductor development amended

The Cabinet has also approved the amendments to the "Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India”, which would result in higher subsidies for the developers.

The government will now offer 50 percent fiscal support for semiconductor fabs "across the technology nodes as well as for compound semiconductors, packaging and other semiconductor facilities", an official release noted.

Fiscal support of 50 percent of project cost on a pari-passu basis, instead of 30 percent at present, will be offered for setting up of compound semiconductors, silicon photonics, sensors fab and semiconductor ATMP /OSAT facilities in India, the government added.

"The modified programme, will expedite investments in semiconductor and display manufacturing in India. On the basis of discussion with potential investors, it is expected that work on setting up of the first semiconductor facility will commence soon," it stated.
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