Production Linked Incentive Scheme Tranche-I under National Programme on High Efficiency Solar PV Modules
State: Central
Ministry: Ministry Of New and Renewable Energy
Department: null
Category: Business & Entrepreneurship, Skills & Employment
Beneficiary Type: Business Entity

The scheme aims to promote the manufacturing of high-efficiency solar photovoltaic modules and reduce import dependence. Through this scheme, Production Linked Incentive is provided to eligible manufacturers.

Benefits:
> **Incentive Benefit:**

1. Production Linked Incentive (PLI) to eligible manufacturers.
1. Financial outlay: ₹4,500 crore.
1. PLI available for 5 years from commissioning or scheduled commissioning date, whichever is earlier.
1. PLI calculation formula:
1. PLI (₹) = Sales Volume (Wp) × Base PLI Rate (₹/Wp) × Tapering Factor × Local Value Addition.

> **Additional Benefit Conditions:**

1. PLI amount increases with increased local value addition.
1. Brownfield projects are eligible, but the PLI rate is 50% of the Greenfield rate.
1. PLI rates are subject to tapering factors:

  - Year 1: 1.4
  - Year 2: 1.2
  - Year 3: 1.0
  - Year 4: 0.8
  - Year 5: 0.6

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Eligibility:
1. The applicant should be a manufacturer proposing minimum integration across solar cells and modules.
1. The applicant should undertake to set up a manufacturing plant of minimum 1,000 MW capacity.
1. The applicant should meet minimum module performance parameters:
1. Minimum module efficiency of 19.50% with temperature coefficient better than -0.30% per degree Celsius; or
1. Minimum module efficiency of 20% with temperature coefficient equal to or better than -0.40% per degree Celsius.
1. The applicant may be a single company or Joint Venture/Consortium, subject to scheme conditions.
1. The applicant may be a Greenfield project. Brownfield projects may participate subject to prescribed eligibility criteria.

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Application Process:
[Offline]
Step 1: The applicant should participate in the transparent bidding process under the scheme.
Step 2: The applicant should submit an application to Indian Renewable Energy Development Agency (IREDA) in response to bid/tender documents. (The PDF indicates applications are received and examined by IREDA.)
Step 3: The applicant should undergo appraisal and inter-se ranking based on:
Extent of Integration
Manufacturing Capacity
Minimum Module Performance Parameters.
Step 4: Selected applicants should sign Contract Agreement with IREDA.
Step 5: Selected applicants should submit Performance Bank Guarantee.
Step 6: The applicant should commission manufacturing facilities within applicable timeline:
Within 3 years; or
Within 2 years; or
Within 1.5 years, as applicable.
Step 7: The applicant should submit annual claims for PLI with supporting documents.
Step 8: Claims will be verified by IREDA/MNRE and incentive may be disbursed as per scheme provisions.

Documents Required:
Application (submitted in bidding process) (implied through application process).
Performance Bank Guarantee.
Self-Declaration (for PLI claims).
Statutory Auditor Certificate / Chartered Accountant Certificate / Cost Accountant Certificate.
Documents Supporting Sales of Modules (for PLI claim).
Documents Supporting Local Value Addition (for PLI claim).