The Union Cabinet on Wednesday cleared a ₹19,500-crore scheme to incentivise manufacturing of domestic solar cell modules to reduce the industry’s reliance on China-made panels. This is a follow-up to ₹4,500-crore tranche that was cleared in November 2020.
Bidders for projects would be given performance-linked incentives (PLI) to set up and run manufacturing facilities that will span the entire production cycle of modules from making the polysilicon cells, ingots, wafers and panels to assembling modules that are used to produce electricity.
The PLI will be disbursed to firms after they set up their manufacturing units and the money disbursed over five years.
