Guidelines for production linked incentive (PLI) schemes released by MNRE
Production linked incentive (PLI) scheme guidelines released by MNRE that aims at promoting of manufacturing of high-efficiency solar models in India.
The ministry of New and Renewable Energy (MNRE) released the guidelines for the production-linked incentive (PLI) scheme on 29th April 2021.
In November last year, an amount of INR 4500 crore has been approved and allocated for the scheme by the cabinet that has to be spent over a five year period. This production linked incentive scheme is for promotion of manufacturing of high efficiency solar models in India.
As per the released guidelines, the Indian Renewable Energy Development Agency (IREDA) has been appointed as the implementing agency for the scheme. Whereas the beneficiary is to be selected through a transparent bidding process.
As informed by the ministry, while the manufacturers setting up higher capacity plants will be given preference, however a minimum of 1000 MW capacity manufacturing plant need to be set up by the applicant manufacturer in order to qualify for the bidding process.
This scheme targets for a well-integrated plant setup that could offer better quality control and competitiveness. In addition, the scheme aims at the development of a sound ecosystem for sourcing of local material in manufacturing, generating employment as well as lessening dependence on imports.
The guidelines stated that the new green-field solar module manufacturing units will be eligible under the PLI scheme. On the other hand, the brownfield projects shall also be allowed to participate for the eligibility criteria.
Guidelines also mentioned that though manufacturers are allowed to bid for any capacity, however the maximum capacity to be awarded to a single bidder shall remain to 50% of the bid capacity or 2000 megawatt whichever is lower, under the scheme. The allotment cap has been place in order to accommodate at least 3 bidders under the allocated 4500 crore amount.
For the disbursements under the PLI, the manufacturing units shall be eligible for sanction on annual basis based on the sales of a high-efficiency solar PV module for 5 years post commissioning or based on 5 years from the scheduled commissioning date – says the guidelines.