PLI-II scheme to save Rs 1.4 Trillion forex

Union Power Minister R K Singh assured that the second version of the production linked incentive (PLI) scheme for solar manufacturing worth Rs 19,500 crore, will help save close to Rs 1.4 lakh crore forex every year.

The Union Cabinet approved the implementation of the PLI Scheme (Tranche II) on the National programme on High-Efficiency Solar PV Modules’, with an outlay of Rs 19,500 crore for achieving a manufacturing capacity of 65 GigaWatt scale in High-Efficiency Solar PV Modules.

Singh said, “This (PLI-II for solar module) will lead to a saving of Rs 1.40 lakh crore saving because of domestic manufacturing. And it will also result in a huge quantity of inflows on account of exports.” The scheme is expected to create direct and indirect employment of about 1,95,000 and 7,80,000 people respectively. The scheme will also bring a direct investment of around Rs 94,000 crore.

The national programme on high-efficiency solar PV modules aims to build an ecosystem for manufacturing of high-efficiency solar PV modules in India, and thus reduce import dependence in the area of renewable energy. It will strengthen the Atamnirbhar Bharat initiative and generate employment.

The PLL-II was announced by Finance Minister Nirmala Sitharaman in her budget speech in February 2022. Asked about his view of free power being provided by some states, Singh said, “I haven't spoken against free power... So, if state governments pay for the subsidies, they have announced in their budget absolutely no problem, you can give free power to everybody. The state government will have to pay for it.”