PLI scheme to boost solar manufacturing, reduce import dependence

India has set an ambitious target of 175 GW of renewable energy capacity by 2022.

The Union Cabinet’s decision to award ‘performance linked incentive’ (PLI) to solar panel manufacturers is likely to give a boost to the domestic companies. The sector is still nascent in India and the government wants to reduce import dependence.

Adani Green, Azure Power, Kolkata-based Vikram Solar, Mumbai-based Waaree Solar are leading solar panel manufacturers in India. Goldman Sachs-promoted renewable project developer ReNew Power recently announced its entry in the solar manufacturing space.

“Large imports of solar photovoltaic (PV) panels pose risks in supply-chain resilience and have strategic security challenges considering the electronic (hackable) nature of the value chain. A focused