Indian Union Government has allotted 39,600 MW Photo Voltaic (PV) manufacturing capacity to 11 companies under tranche-II of Production Linked Incentive (PLI) Scheme for high-efficiency solar modules. This tranche entails an outlay of Rs. 14,007 crore for the aforementioned PV manufacturing capacity addition by April 2026.
Solar PV Manufacturing Capacity Awarded under Three Baskets
Solar PV manufacturing capacity under Centre’s PLI scheme has been awarded under three baskets depending on the elements that will be manufactured by the companies.
Manufacturers in the first basket will manufacture Polysilicon, Ingot Wafers, Solar Cells and Modules (P+W+C+M), while those in the second basket will manufacture Wafers, Solar Cells and Modules (W+C+M). The third basket entails the manufacturing of Solar Cells and Modules (C+M).
Reliance, Indosol & First Solar to Manufacture 15,400 MW Capacity in P+W+C+M Basket
Under the first basket, Reliance and Hyderabad-based Indosol will manufacture solar modules of 6,000 MW capacity each. America’s First Solar will develop modules of 3,400 MW capacity, thus taking the total solar PV production capacity to 15,400 MW under this basket.
Five Companies Awarded 16,800 MW Solar PV Manufacturing Capacity in W+C+M Basket
Five companies will be developing a manufacturing capacity of 16,800 MW cumulatively for Silicon wafers, solar cells and modules. Major share of this capacity will be set up by Waaree and ReNew. Waaree will develop 6,000 MW and ReNew will develop 4,800 MW of manufacturing capacity under the W+C+M basket. Avaada will be setting up 3,000 MW solar PV manufacturing capacity, while Ahmedabad’s Grew Solar and JSW Energy will establish PV manufacturing capacities of 2,000 MW and 1,000 MW respectively.
Solar PV Production Capacity of 7,400 MW to be Developed in C+M Basket
Under the C+M basket, three companies namely Tata Power Solar, Vikram Solar and AMPIN will develop 7,400 MW Solar PV manufacturing capacity. Out of this, Tata Power Solar will develop 4,000 MW, Vikram Solar will set up 2,400 MW and AMPIN will establish 1,000 MW of PV manufacturing capacity.
Solar PV Capacity to be Augmented in Phases
In its release dated 28th March 2023, the Ministry of Power has stated that the upcoming 39,600 MW solar PV manufacturing capacity will become operational in a phased manner. Out of the total capacity, 7,400 MW will be deployed by October 2024 and another 16,800 MW will be commissioned by April 2025. The remaining 15,400 MW solar PV manufacturing capacity is expected to be deployed by April 2026.
The Government expects this tranche of the Solar PV PLI scheme to bring in an estimated investment of Rs. 93,041 crore. Moreover, career opportunities for about 1,01,487 people are expected to be created, out of which 35,010 will be employed directly while the rest will be employed indirectly.
Over 48 GW of Solar Module Production Alloted till Date
In November-December 2022, tranche-I of the PLI Scheme for Solar PV manufacturing allocated government funds for the production of 8,737 MW of solar modules.
Commenting on the PLI scheme, Mr. R.K Singh, Union Power Minister, said, “The PLI Scheme has proved to be a watershed event in India’s Renewable landscape resulting in around 48 GW domestic module manufacturing capacity within next 3 years”.
Considering tranche-I and tranche-II of the scheme together, the Centre has envisioned the development of domestic Solar PV manufacturing capacity of 48,337 MW under this PLI scheme.