On 18th November 2022, the Solar Energy Corporation of India (SECI) issued the tender for the second tranche of the production-linked incentive (PLI) scheme for setting up manufacturing capacities for high efficiency solar PV modules in India.
The total outlay for the second tranche of PLI is Rs 19,500 crore (US$2.6 billion). The government expects this to substitute PV imports worth Rs 1,40,000 crore (US$16.94 billion) annually and create 975,000 direct and indirect jobs.[1]
Source: IREDA, SECI
Of the total Tranche 2 outlay, the government reserved Rs 12,000 crore (US$1.45 billion) for companies setting up integrated manufacturing of polysilicon, wafers, cells and modules. The funds allocated are Rs 4,500 crore (US$605 million) for wafers, cells and modules and Rs 3,000 crore (US$362.97 million) for cells and modules.
The bidding for PLI tranche 2 was concluded on 28th February 2023. As per the results announced on 28th March 2023, Shirdi Sai Electricals, through its subsidiary Indosol Solar Private Limited, secured the highest PLI amount of Rs. 3300 crore (US$ 401 million) for an integrated polysilicon to module manufacturing capacity of 6000 MW. Other prominent winners include Reliance (6000 MW), Waaree (6000 MW), ReNew (4800 MW), Vikram Solar (2400 MW) and Tata Power Solar (4000 MW). Note: Stage 1 (Polysilicon), Stage 2 (Wafer), Stage 3 (Cell), Stage 4 (Module) Source: SECI
Notably, US based solar manufacturer, First Solar, became the first and only company to secure PLI funding of Rs 1178 crore for setting up 3400 MW integrated polysilicon to module factory. Adani however, one of the largest domestic solar PV manufacturers, did not participate in PLI tranche 2 bidding.
PLI tranche-ll marks the entry of some of the prominent Indian solar developers into the manufacturing space. These include Avaada, ReNew and AMP energy. A significant portion of the manufacturing capacity by these developers will cater to self-consumption in their own solar projects. Note: Stage 1 (Polysilicon), Stage 2 (Wafer), Stage 3 (Cell), Stage 4 (Module) Source: SECI
Over the next few years, PLI scheme (both tranches combined) will directly lead to setting up of 27.4 GW of integrated polysilicon to module manufacturing capacity in India. Additionally, PLI will also lead to module production capacity to augment by at least 51.6 GW to reach >100 GW by FY2026.
To fulfil the nation's larger goal of achieving 50% of installed power capacity by 2030 through non-fossil fuel sources, the PLI scheme has come at an opportune time. Furthermore, once all this capacity is operational, India will be the second largest module manufacturer after China.
