Union Cabinet clears 2nd tranche of PLI scheme to boost manufacturing of High Efficiency Solar PV Modules.

September 22, 2022

The Union Cabinet has approved the second tranche of Production Linked Incentive (PLI) Scheme on ‘National programme on High Efficiency Solar PV Modules’ for achieving manufacturing capacity of Giga Watt scale in High Efficiency Solar PV Modules.
The national programme on High Efficiency Solar PV Modules aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India reducing import dependence in the area of Renewable Energy.
It will strengthen the Aatmanirbhar Bharat initiative and generate employment.
The Tranche-2 scheme of High Efficiency Solar PV Modules has been approved with an outlay of 19,500 crore rupees for achieving manufacturing capacity of Giga Watt scale.
About 65 thousand Mega Watt per annum manufacturing capacity of fully and partially integrated solar PV modules will be installed.
The scheme will bring direct investment of around 94 thousand crore rupees.
The scheme will generate direct employment for around 2 lakh persons and indirect jobs to around eight lakh persons.
The Cabinet also approved modifications in Programme for Development of Semiconductors and Display Manufacturing Ecosystem India.
Under modified programme, a uniform fiscal support of 50 per cent of Project Cost shall be provided across all technology nodes for setting up of Semiconductor Fabs or semicondutor fabrication plant.
Given the niche technology and nature of compound semiconductors and advanced packaging, the modified programme shall also provide fiscal support of 50 per cent of Capital Expenditure.
Earlier there were an incentive in range of 30 to 50 per cent are provided for three schemes related to semiconductor, display and compound semiconductor and packaging schemes.
Under the modified program and uniform incentive of 50 per cent will be applied to these three schemes.