IREDA Opens Applications for Solar Module Manufacturing under PLI

Indian Renewable Energy Development Agency (IREDA) yesterday invited applications for setting up manufacturing capacities for vertically integrated high-efficiency solar photovoltaic modules under the production-linked incentive (PLI) scheme. The agency will accept applications till June 30, 2021 and it will open bids on 1 July 2021.

The PLI scheme, which aims to further domestic manufacturing of high-efficiency solar PV cells and modules in India in order to reduce reliance on imports, was approved by the President last month. It focusses on 10 key sectors, including high-efficiency solar modules for which Rs 4,500 crore have been allocated in funding over five years.

The document states that the applicants are required to set up either a brownfield or greenfield manufacturing facility for the entire capacity allotted under the scheme and are not allowed to set up a mix of both kinds of facilities allotted under the scheme. The minimum capacity of the manufacturing unit to be installed shall be 1,000 MW. The PLI will be disbursed to the successful applicants annually for a period of five years.

Applicants would be required to submit their response by indicating the yearly PLI values based on their expected sales of solar PV modules in megawatt, base case PLI for which their product is eligible, expected local value addition, and tapering factor as per the scheme guidelines.

Manufacturers setting up any solar PV technology-based production facilities would be eligible for applying for the incentive assistance, so long as the capacities set up achieve the minimum level of integration of cells and modules, the minimum manufacturing capacity requirements and the minimum threshold module performance parameters of module efficiency, as per the scheme guidelines. The company may form a special purpose vehicle (SPV) for setting up the manufacturing facility after the issue of Letter of Award (LoA) by IREDA. However, such SPV should be formed within 90 days from issue of LoA.

The agency has also said that in case of any delay beyond 90 days for formation of the SPV, the LoA issued would be withdrawn and capacity would be allocated to entities in the waiting list.

Manufacturing capacity/unit, for which required capital goods have been imported before the last date of bid submission, will not be eligible for participation under this PLI scheme.

All the terms and conditions of the scheme would be applicable for selection of the bidders as detailed in the ‘MNRE PLI Scheme’ document. Selected bidders will have to furnish a performance bank guarantee of Rs 45,000 per MW for cell and module manufacturing capacity, Rs 70,000 per MW for ingot-wafer, cell, and module manufacturing capacity, and Rs 110,000 per MW for polysilicon, ingot-wafer, cell, and module manufacturing capacity, according to the the bid document.

The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity and as such reinforce the ‘Aatmanirbhar Bharat’ initiative, the MNRE stated.

IREDA is a Mini Ratna (Category – I) Government of India Enterprise under the administrative control of Ministry of New and Renewable Energy (MNRE). A Public Limited Government Company established in 1987, it is engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy.