India has issued new guidelines for the Production Linked Incentive Scheme. | So Good News


Applicants will be required to establish facilities for solar waste recovery and recycling and adopt circular economy principles. Image: Vikram Solar

The Indian government has released guidelines for the second round of its Production Linked Incentive (PLI) program, which aims to further boost domestic PV production and reduce the country’s dependence on imports.

With its second round of approval on September 23; The program aims to add 65GW of production capacity of fully and partially integrated solar PV modules, bringing in direct investments of nearly INR940 billion (US$11.59 billion). Energy (MNRE). Indian rating agency ICRA, a Moody’s Investors Service company, put the figure at 40GW of cell and module capacity.

According to MNRE guidelines, the objective of the program is to “enhance solar PV manufacturing capacity by bringing cutting-edge technologies to India” and “promote establishment of integrated plants for better quality control and competitiveness”. Other things. It also notes that this scheme will be “technologically agnostic”.

The program, which will create nearly one million direct and indirect solar jobs, received INR 45 billion (US$616.8 million) in funding in its first allocation, but it has more than quadrupled to INR 195 billion (US$2.4 billion). As India ramps up its PV production plans, the second round in February 2021 has prioritized “a fully integrated manufacturing unit from polysilicon to solar PV modules”.

It will be implemented by MNRE along with Solar Energy Corporation of India (SECI), which will act as the implementing agency authorized to conduct physical inspections of the applicants’ manufacturing units and offices.

Applicants are a single company; Although it may be a joint venture (JV) or consortium. Although the members of the JV or consortium are only allowed to participate in one such partnership.

Manufacturing facilities can be built on green or brownfield sites, but this will only cover 50% of PLI receivable for greenfield sites. Greenfield sites “must be established in buildings physically separated from existing manufacturing units”.

Bidders will need to commit to a minimum level of integration throughout the solar supply chain. They can offer the highest performance figures and portfolios of funds for one of the following three baskets:

  1. polysilicon, wafers, Manufacturing cells and modules or a fully integrated thin film module factory (10GW maximum bid and INR12 billion funding available).
  2. Manufacturing of ingots and wafers as well as solar cells and modules (6GW maximum bid and INR 4.5 billion funding available).
  3. Manufacturing of solar cells and modules (6GW maximum bid and INR3 billion funding available).

If any funds remain. This will be distributed through the rest of the categories, starting with the most combined category (ie number 1 in the above example and moving down).

But only 50% of the capacity to be built under the applicant’s bid, the Government of India will provide half of the production base and the applicant is expected to build it itself in the second half.

India’s previous PLI program was auctioned for 4GW, not 10GW. But after competition for funding intensified, MNRE decided to give opportunities to bigger players who were looking for market entry or whether to expand in the sector.

PV manufacturers must satisfy a certain level of module efficiency and local value addition to qualify for the program, the guidelines say. You can learn the specific terms here on page seven of the guidelines.

In their submissions, bidders will include the type of technology proposed; their plan for local value addition; Expected employment generation and projected export figures over the life of the program must also be announced.

For specific details and formulas on how PLI incentives are calculated, See pages eight to ten of the instructions.

Funds will be distributed for five years from the date of commencement of production, which is set at an earlier date, and a team from MNRE and SECI will immediately visit the plant to verify its structural compliance. PLI Rules.

Manufacturers will need to set up facilities to recover and recycle solar waste and adopt circular economy regulations.


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