A Government of India (GOI) entity, Indian Renewable Energy Development Agency Limited (IREDA) has invited applications to select companies that can set up high efficiency solar PV module manufacturing capacity in the country. The call has been launched under the country's Production Linked Incentive (PLI) scheme for solar with an outlay of INR 45 billion (see India Details Production Linked Incentive Scheme For Solar).
According to the tender launched, manufacturers setting up any solar PV technology-based production facilities will be eligible to apply for incentive assistance, provided the manufacturing capacities it sets up achieves the minimum level of integration of cells and modules, the minimum manufacturing capacity requirements and the minimum threshold module performance parameters of module efficiency and modules' temperature coefficient of Pmax, as per the scheme guidelines.
Every applicant will be allowed to submit only one application. To set up the manufacturing facility, the winner will need to form a special purpose vehicle (SPV) within 90 days of receiving the letter of award (LOA).
According to the tender, the applicant should have a net worth or equity commitment of INR 850 million ($11.68 million) per GW at the time of application for cell and module manufacturing capacity, and it should grow to INR 2.35 billion ($32.3 million) per GW within 90 days from the LOA.
For ingot-wafer+cell+module capacity, minimum net worth needs to be INR 1.4 billion ($19 million) per GW at the time of application, and should grow to INR 3.85 billion ($53 million).
For polysilicon+ingot-wafer+cell+module, the net worth needs to be INR 2.2 billlion ($30 million) per GW, growing to INR 6.05 billion ($83 million) within 90 days of LOA.
Applicants will be free to set up either a brownfield or greenfield manufacturing facility for the entire capacity they win under the scheme, but won't be allowed to mix up. The tender stipulates that manufacturing capacity/unit for which required goods have been imported before the last date of submission, will not be eligible for participation under the scheme.
Interested companies have time till June 30, 2021 to submit their applications, according to the tender schedule available on IREDA website. Names of successful applicants and waiting list will be released on July 26, 2021 and they will receive a letter of award (LOA) on July 30, 2021.
Ratings agency India Ratings & Research recently opined that with INR 45 billion budget, India can expect to benefit sales of 20 GW of locally produced solar modules over 5 years, but it won't be enough to meet its 280 GW of installed solar power capacity target by FY2030 (see PLI Scheme Could Support 20 GW Module Sales Over 5 Years).
Currently, India's domestic solar cell operational production capacity is around 2.5 GW, and between 9 GW to 10 GW for modules.
PLI Scheme is garnering a lot of interest from several local players, encouraging them to either expand their existing capacity, or venture into solar manufacturing (see ReNew Power Unveils 2 GW Solar Manufacturing Plans).
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