Recently Union Cabinet of India, Chaired by Prime Minister Modi, formally approved the Production Linked Incentive (PLI) Scheme called the “National Programme on High Efficiency Solar PV Modules”. PV is Photo Voltaic. They are units that convert light energy into electrical energy.

Points To Note

  • The National Programme aims to achieve manufacturing capacity in GW scale in high efficiency solar Photo Voltaic modules.
  • The total budget of the scheme has been estimated as Rupees 4,500 crores.
  • The National programme aims to bring additional 10,000 Mega Watt capacity of integrated solar PV manufacturing units in India.
  • It will bring in direct investment of Rupees 17,200 crores in solar Photo Voltaic manufacturing projects.
  • The demand for “Balance of Materials” is expected to touch Rupees 17,500 crores in five years after the launch of the scheme.
  • It will bring indirect employment of 1,20,00 and direct employment of 30,000.
  • It will stimulate research and development that will achieve higher efficiency in solar PV modules.


The solar PV manufacturers are to be selected through transparent competitive bidding process. The scheme will reward manufacturers with higher efficiencies of solar Photo Voltaic modules. Also, they will be incentivised for sourcing their material from the domestic markets.

Significance of the scheme

The solar capacity addition in India largely depends on imported solar PV Cells and modules. The Programme on High Efficiency Solar Photo Voltaic Modules will help to reduce the dependence on imports of solar Photo Voltaic cells and modules. Also, it will support Atma Nirbhar Bharat initiative.

Production Linked Incentive Scheme

The main objective of Production Linked Incentive Scheme is to make manufacturing in India globally competitive. This scheme will generate large scale employment opportunities and will enhance exports substantially.

Other approved Schemes

Apart from this scheme, cabinet has also approved the Production Linked Scheme for White Goods-LED Lights and Air Conditioners.

National Programme on High Efficiency Solar PV Modules