Cabinet approves schemes for domestic manufacturing of Solar PV cells and modules
Power Minister R.K. Singh informed direct employment to 30,000 people and indirect jobs to 1.2 lakh people has been targeted by the ‘National Programme on High Efficiency Solar PV Modules’.
A production linked incentive scheme (PLI)for solar energy sector has been approved by the union cabinet. The scheme has the investment outlay of about Rs 4,500 crore.
Another production linked incentive (PLI) scheme was also approved by the cabinet. The PLI scheme for White Goods that includes Air Conditioners and LED lights has the investment outlay of Rs 6238 crore. The government has taken several steps to enhance domestic manufacturing of solar modules and PV cells and some of these include the following:
1. Modified Special Incentive Package Scheme (M-SIPS) that mainly provides subsidy for capital expenditure that had 25% for investment in non-SEZs and 20% for investments in Special Economic Zones (SEZs).
2. Ministry of New & Renewable Energy (MNRE) has issued the Scheme Guidelines for ‘National Programme on High Efficiency Solar PV Modules’. Besides preference of Make in India in procurement in renewable energy and only Class-I local supplier shall be eligible to bid.
3. Imposition of Basic Customs Duty (BCD) on import of solar PV cells and modules has been announced by the government. with effect from 01.04.2022.
4. Ministry of Finance (Department of Revenue) has withdrawn the benefit of concessional customs duty on imported items for initial setting up of solar power projects.
