JSW Solar, Shirdi Sai Electricals and Reliance Win Solar PLI Allotments

In the end, IREDA’s final list of winners for the Solar PLI (Performance Linked Incentives) scheme threw up no surprises as the bidders with plans for all stages of production and the highest capacity bids of 4 GW walked away with the top 3 allotments.

Designed to encourage the setting up of manufacturing capacities for a minimum total of 10 GW of vertically-integrated high-efficiency solar modules, the PLI scheme had given the highest weightage to commitment for all the 4 stages of production and capacities.

The responses received had just 4 firms who met the criteria for all 4 stages and production capacities. The fourth one, Adani Group, has missed out for now. PLI totaling Rs 4450 crores for a total capacity of 10,483 MW has been finally announced by IREDA.

While Jindal India Solar Energy has been awarded a PLI of Rs 1390 crore, Shirdi Sai Electricals has been allotted a PLI of Rs1875 crores.  Reliance New Energy Solar has been awarded Rs 1190 crore for a capacity of 2,483 MW. Jindal and Shirdi Sai Electricals have been allotted PLI for 4 GW each. Shirdi Sai is the dark horse that has surprised, as the transformer manufacturer and Transmission services firm walked away with a letter of award beating other, more fancied firms. The Hyderabad-based firm is set to make a massive bet on solar, considering its existing group revenues of about Rs 1250 crores invests into the new opportunity.

The final PLI awarded has been based on the total amount allocated for the scheme. IREDA, as the implementing agency, will get 1% of the amount allotted and disbursed.

Notable firms missing out include PSU giant and Coal Miner, Coal India Limited, US firm First Solar, which had bid for 3 GW capacity, Larsen and toubro. Industry leader Adani of course missed out due to its higher PLI support request.

Irrespective, as we had predicted, the winners mean not just a whole new batch of manufacturers, but also the creation of over 10 GW of capacity across the solar value chain, where key elements like polysilicon manufacturing, and manufacture of Ingots/wafers will be a first in India.