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PLI Scheme on ‘National programme on High Efficiency Solar PV Modules’

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    Polity & Governance
  • Published
    23rd Sep, 2022


The Union Cabinet approved Production Linked Incentive Scheme Tranche-2 on ‘National programme on High-Efficiency Solar PV Modules’ for achieving manufacturing capacity of Giga Watt scale in High-Efficiency Solar PV Modules.

About the Programme

  • The national programme on High Efficiency Solar PV Modules aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India.
  • The programme is being implemented under the Ministry of New & Renewable Energy.
  • Under it, the government has provided an outlay of Rs.19,500 crore for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV Modules.
  • Solar PV manufacturers will be selected through a transparent selection process.
    • PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants on sales of high efficiency solar PV modules from the domestic market will be incentivised.

About Solar PV modules

  • Solar PV modules are created by joining together solar cells with photovoltaic (PV) cells.
  • They are produced using semiconductors like crystalline silicon.
  • Solar modules transform solar energy into electric energy.


  • It will strengthen the Atamnirbhar Bharat initiative and generate employment.
  • Furthermore, it will help in reducing the country's import dependence in the area of Renewable Energy.

Benefits of PLI Scheme 

  • The outcomes/benefits expected from the scheme are as follows:
    • It is estimated that about 65,000 MW per annum manufacturing capacity of fully and partially integrated, solar PV modules would be installed.
    • The scheme will bring direct investment of around Rs.94,000 crore.
    • Creation of manufacturing capacity for Balance of Materials like EVA, Solar glass, Backsheet, etc.
    • Direct employment of about 1,95,000 and indirect employment of around 7,80,000 persons.
    • Import substitution of approximately Rs.1.37 lakh crore.
    • Impetus to Research and Development to achieve higher efficiencies in Solar PV Modules.

What is the PLI Scheme?

  • The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher import substitution and employment generation.
  • Launched in March 2020, the scheme initially targeted three industries:
    • Mobile and allied Component Manufacturing
    • Electrical Component Manufacturing
    • Medical Devices
  • This scheme was introduced in line with India’s Atma Nirbhar Bharat Campaign. 

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