Low incentive could dampen interest in PLI scheme for solar manufacturing

Business Standard | May 3, 2021 at 2:00 AM
  • The Rs 4,500-crore Performance Linked Incentive (PLI) scheme for solar manufacturing has not met industry expectations since domestic manufacturers could end up getting barely 3-5 per cent of the sale value of their solar cells and modules through this scheme.
  • DAM Capital in a recent note estimated that the capital required for 1GW of cell and module is expected to be Rs 1,500 crore per GW and the scheme could see 8-10 GW of solar cell and module manufacturing capacity addition in the country.
  • The Centre has announced the imposition of a 40 per cent basic customs duty (BCD) on imported solar cells and modules from April 2022 onwards in order to support domestic solar manufacturing.