India selects three firms for PLI scheme for solar panel manufacturing

Solar panels industry

India has selected Shirdi Sai Electricals, Jindal India Solar Energy and Reliance New Energy Solar as the beneficiaries of the production-linked incentive (PLI) scheme for solar panel manufacturing.

These companies will set up around 12,000 megawatt (MW) of solar panel manufacturing capacities under the scheme, and receive a combined incentive of Rs 4,500 crore.

India has set a target to install 500 gigawatt (GW) of renewable energy capacity by 2030 and solar plants will be the major contributor.

Shirdi Sai Electricals will receive PLI of Rs 1,875 crore over five years and Jindal India Solar will get Rs 1,390 crore. Reliance New Energy Solar, a subsidiary of Reliance Industries (RIL), will get PLI of Rs 1,190 crore.

If India ratifies the Union ministry of new and renewable energy’s proposal of earmarking an additional Rs 18,000 crore for the solar PLI scheme, the other 13 shortlisted companies, including Adani Infrastructure, FS India Solar Ventures, Coal India, Larsen and Toubro, ReNew Solar, Tata Power Solar, Waaree Energies and Vikram Solar, would also receive benefits, Financial Express reported.

The Indian Renewable Energy Development Agency selected beneficiaries of the PLI scheme through competitive bidding, and ranked on the basis of manufacturing capacity proposed to be set up by companies and the extent of elementary products required for manufacturing solar panels they promise to make in the country.

Solar module and cell imports will attract a basic customs duty of 40 percent and 25 percent, respectively, from the beginning of FY23.