NEW DELHI: The selection criteria under the Rs 19,500-crore second tranche of production-linked incentives (PLI) for solar manufacturing puts a premium on efficiency levels of the modules unlike in first tranche, according to norms notified by the new & renewable energy ministry.
The selection criteria under the first tranche had separate marks for capacity and integration levels, where value-addition and capacity were being used as a secondary criteria to address situation of ties among competing firms.
“The focus on efficiency and local value addition intranche II of the scheme is an indicator that government’s goal is not restricted to merely promoting manufacturing in India but has been enhanced to providing high-efficiency solar PV modules and ensuring development of overall supply chain for manufacturing here,” E&Y tax partner Saurabh Agarwal said.
He said a separate budget has been allocated for each level of integration — such as polysilicon to module, ingots to module and cell to module —to ensure that mid to large players in the industry would get a fair chance to participate in the revised scheme unlikethe previous scheme.
“However, the incentive amount has been substantially reduced compared to the previous scheme. So bidders should also focus on incentives under the State Industrial Policy, customs concessional schemes, etc, when computing their return on investment while analysing feasibility for manufacturing solar PV modules here,” he said.
The Cabinet had on September 21 approved the second tranche of PLI for highefficiency solar module manufacturing, a move the government said will substitute imports worth Rs 1. 4 lakh crore a year and create 9,75,000 direct and indirect jobs.
The selection criteria under the first tranche had separate marks for capacity and integration levels, where value-addition and capacity were being used as a secondary criteria to address situation of ties among competing firms.
“The focus on efficiency and local value addition intranche II of the scheme is an indicator that government’s goal is not restricted to merely promoting manufacturing in India but has been enhanced to providing high-efficiency solar PV modules and ensuring development of overall supply chain for manufacturing here,” E&Y tax partner Saurabh Agarwal said.
He said a separate budget has been allocated for each level of integration — such as polysilicon to module, ingots to module and cell to module —to ensure that mid to large players in the industry would get a fair chance to participate in the revised scheme unlikethe previous scheme.
“However, the incentive amount has been substantially reduced compared to the previous scheme. So bidders should also focus on incentives under the State Industrial Policy, customs concessional schemes, etc, when computing their return on investment while analysing feasibility for manufacturing solar PV modules here,” he said.
The Cabinet had on September 21 approved the second tranche of PLI for highefficiency solar module manufacturing, a move the government said will substitute imports worth Rs 1. 4 lakh crore a year and create 9,75,000 direct and indirect jobs.
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