Solar PLI Tranche 2 Allocations Released, 48 GW Of Domestic Manufacturing Capacity By 2025-26

By Saur News Bureau/ Updated On Tue, Mar 28th, 2023

Highlights :

The Tranches 2 PLI has allocations for established names like Vikram Solar, Waaree Energies, Tata Power, besides new manufacturing entrants like ReNew, Grew Energy, Ampin and more. US based First Solar is the only foreign owned firm to make the cut.
In the key category of Polysilicon to Module manufacturing, Reliance, Indosol, and First Solar have made the cut. Notably, no Public Sector enterprise has qualified.

Solar PLI Tranche 2 Allocations Released, 48 GW Of Domestic Manufacturing Capacity By 2025-26

The government of India has allocated 39600 MW of domestic Solar PV module manufacturing capacity under PLI (Tranche-II), or the Solar PLI scheme to incentivise domestic manufacturing. The PLI or Performance Linked Incentive scheme offers financial incentives to manufacturers for meeting specific milestones in sales, linked indirectly to capacity creation.

The PLI (Tranche-II) is expected to lead to investments of Rs. 93041 crores, and generate over one Lakh direct and indirect jobs 11 companies have made the cut finally, a significant improvement over the three that made it in the previous round, with Reliance the common factor.

With a total outlay of Rs. 14,007 Crores under the Production Linked Incentive Scheme for High Efficiency Solar PV Modules (Tranche-II), as it is called, manufacturing capacity totaling 7400 MW is expected to become operational by October 2024, 16,800 MW capacity by April 2025 and the balance 15,400 MW capacity by April 2026. The list of the companies is provided below.

Capacity awarded under PLI Scheme (Tranche-Il)
P+W+C+M Basket
sr. No	Name of Bidder	Manufacturing Capacity (MW)
1	Indosol	6000
2	Reliance	6000
3	First Solar	3400
	Total	15400
W+C+M Basket
sr. No	Name of Bidder	Manufacturing Capacity (MW)
1	Waaree	6000
2	Avaada	3000
3	ReNew	4800
4	JSW	1000
5	Grew	2000
	Total	16800
C+M Basket
sr. No	Name of Bidder	Manufacturing Capacity (MW)
1	Vikram	2400
2	AMPIN	1000
3	Tata Power Solar	4000
	Total	7400

Solar Seeks Atmanirbharta

Speaking on the success of the PLI scheme, R. K. Singh, Union Minister for Power & NRE said that India was well on its way to climb up the value chain in production of the high technology Solar PV Modules and this capacity addition is a major step towards making India Aatmanirbhar in solar manufacturing sector. “The PLI Scheme has proved to be a watershed event in India’s Renewable landscape resulting in around 48 GW domestic module manufacturing capacity within next 3 years. Scheme has boosted Government’s efforts to reduce not only the impact of global supply chain shocks but also our import dependence adhering to the Hon’ble Prime Minister’s vision of an Aatmanirbhar Bharat,” Singh said.

A total integrated capacity of 8737 MW was allocated under Tranche-I of the Scheme, in November-December, 2022. Considering the two tranches together, the total domestic solar PV module manufacturing capacity allocated under the PLI Scheme is 48,337 MW, with a cumulative support of more than Rs. 18,500 Crore by the Government.

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The next big ‘event’ in the manufacturing space is likely to be the PLI scheme for Green Hydrogen, likely to include a scheme to support electrolyser manufacturing. That will complete the full circle of module manufacturing, energy storage (from the PLI for battery manufacturing) and Green Hydrogen, potentially placing India well to be a global leader in manufacturing for the energy transition.

With many smaller manufacturers already expanding capacity outside of the PLI scheme, India’s total solar capacity looks set to hit close to 65 GW by the time the PLI scheme plays out. With capacity creation in other critical components ranging from Solar glass, trackers and other key chemicals also under development, the country seems set to become a key source for solar equipment in the years to come, a reversal from the status as one of the largest importers of equipment until now.