Construction Industry News
The selection criteria under the second tranche of Rs 195 billion of production-related incentives (PLI) for the production of solar energy places a premium on the efficiency levels of the modules, as opposed to the first tranche, according to the standards published by the Ministry of Economic Affairs. New and Renewable Energy (MNRE ).
The selection criteria under the first tranche had separate figures for capacity and integration levels, while value added and capacity were used as secondary criteria to address potential links between competing companies.
“The focus on efficiency and local value addition in tranche II of the scheme is an indicator that the government's goal is not limited to advancing manufacturing in India, but has improved to provide high-efficiency solar PV modules and the ensure the development of the overall supply chain for the production here,” said an expert.
A separate budget has been allocated for each level of integration - such as polysilicon to module, ingot to module, and cell to module - to ensure that medium to large industry players have a fair chance to participate in the revised scheme, unlike to the previous arrangement.
“However, the incentive amount has been significantly reduced compared to the previous scheme. Thus, bidders should also focus on incentives under state industrial policy, customs regulations, etc., when calculating their return on investment, while analyzing the feasibility for the production of photovoltaic solar panels here,” said the expert.
The cabinet had approved the second tranche of PLI for the production of high-efficiency solar modules on September 21, a move that the government says will replace imports worth Rs 1.4 trillion per year and create 975,000 direct and indirect jobs.
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