Economy

IREDA invites bids for solar PLI scheme

Our Bureau | | Updated on: May 25, 2021
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The offer-for-bids will close on June 30

Indian Renewable Energy Development Agency on Tuesday invited bids for setting up solar manufacturing units under the central government’s ₹4,500 crore production-linked incentive (PLI) scheme.

Manufacturers will be able to claim the PLI for the higher bracket if their production improves under any of the criteria within 8-1/2 months of a particular year, the tender document said. The offer for bids will close on June 30, it added.

The PLI will be disbursed to successful bidders annually for five years since the commissioning of their plant. The incentive rate on the quantity of modules sold annually will be calculated under criteria such as backward integration of the production chain, domestic sourcing of raw materials, efficiency of modules produced, and size of the plant.

Boost to solar producers

The Cabinet approved the PLI scheme in April, a boost to solar manufacturers that follows the imposition of the basic customs duty of 50 per cent and 25 per cent on imported modules and cells, respectively, which will come into effect from April next year.

The PLI scheme gives manufacturers 1-1/2 to 3 years to set up new units. In the current fiscal year, however, tariffs are likely to rise to ₹2.50-2.75 per unit levels in auctions for solar projects as the duty raises capital costs for developers, according to Crisil Research.

 

Published on May 25, 2021

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