PLI Scheme for Solar Cell Manufacturing

Why in the News?

Recently, the Union Cabinet approved the Production Linked Incentive (PLI) Scheme on ‘National programme on High-Efficiency Solar PV Modules’.

Key Points:

• India has international climate commitments, to a target of installing 5,00,000 MW of electricity from non-fossil fuel-based sources by 2030.
• PLI will be disbursed for 5 years post commissioning of solar PV manufacturing plants. 
• Nodal body: Ministry of New and Renewable Energy

Benefits: 

• Reduce the industry’s reliance on China-made panels.
• create direct employment
• give impetus to research and development to achieve higher efficiency.
• Allow import substitution of Rs. 1.37 lakh crore approx.
• strengthen the Atamnirbhar Bharat initiative
• Secure energy security through renewable sources of energy

About Production Linked Incentive (PLI)  Scheme:

• It was launched by central government in 2020 to boost domestic manufacturing and cut import bills and employment generation.
• It aims to give companies incentives on incremental sales from products manufactured in domestic units.