Ministry of Power on Tuesday says the government has allocated a total capacity of 39,600 MW of domestic Solar PV (Photovoltaic) module manufacturing capacity to as many as 11 companies, including Reliance Industries, Tata Power Solar, Indosol, and First Solar, under the second tranche of the production-linked incentive (PLI) scheme. Other winners in the phase 2 solar PLI scheme are Vikram Solar, Waaree Energies, ReNew Solar, Avaada Ventures, JSW Renewable, Grew, and Ampin Solar.  

“The government has allocated a total capacity of 39,600 MW of domestic Solar PV module manufacturing capacity to 11 companies, with a total outlay of ₹14,007 crore under the production linked incentive scheme for high efficiency solar PV modules (tranche-II),” Ministry of Power says in a release.

The ministry says 7,400 MW solar manufacturing capacity is expected to become operational by October 2024, 16,800 MW by April 2025, and the balance 15,400 MW by April 2026. The second tranche of the PLI scheme is expected to bring in an investment of ₹93,041 crore and generate over one lakh direct and indirect jobs, according to an official statement. It will create a total of 1,01,487 jobs with 35,010 getting direct employment and 66,477 being indirectly employed, the ministry adds.

Union Minister for Power R K Singh said India was well on its way to climb up the value chain in production of the high technology solar PV modules and this capacity addition is a major step towards making India Aatmanirbhar in the solar manufacturing sector.

"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 the next 3 years. Scheme has boosted Government's efforts to reduce not only the impact of global supply chain shocks but also our import dependence adhering to the Hon'ble Prime Minister's vision of an Aatmanirbhar Bharat," says Singh.

Under tranche-I of the PLI scheme, the centre had allocated a total integrated capacity of 8737 MW in November-December, 2022. Considering the two tranches together, the total domestic solar PV module manufacturing capacity allocated under the PLI scheme is 48,337 MW, with a cumulative support of more than ₹18,500 crore by the government.

The country has a solar equipment manufacturing capacity of 24 gigawatt (GW) of modules and 6.4 GW of PV capacity and around 15-20 GW is under construction. India is eyeing an additional 40 GW of solar manufacturing capacity to come under the Solar PLI-II, with a goal of over 90 GW capacity by 2030. Until a couple of years ago, India's domestic solar equipment manufacturing capacity was less than 10 GW and nearly 80% of the total solar equipment needed for projects were imported from China.

One major provision in PLI -II, announced in the Union Budget 2022-23, is to help the country develop its entire supply chain and integrated domestic manufacturing capacities. The selected manufacturers are mandated to set up giga scale capacities and can avail the PLI benefits for five years. 

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