The Cabinet on Wednesday approved a Rs 19,500-crore production linked incentive (PLI) scheme on 'national programme on high efficiency solar PV modules' with an aim to attract Rs 94,000 crore investment in the sector.
One of the benefits expected from the PLI scheme is that about 65,000 MW per annum manufacturing capacity of fully and partially integrated solar PV modules would be installed, news agency PTI reported.
Giving details about the Cabinet decision, information and broadcasting minister Anurag Thakur said that about 2 lakh direct jobs would be created in the sector.
The national programme aims to build an ecosystem for manufacturing of high efficiency solar PV modules in India and reduce import dependence in the area of renewable energy.
The initiative is expected to reduce import substitution of about Rs 1.37 lakh crore.
Solar PV manufacturers will be selected through a transparent selection process. PLI will be disbursed for 5 years after commissioning of solar PV manufacturing plants and sales of high efficiency solar PV modules from the domestic market will be incentivised.
Moreover, the cabinet has also approved modifications in the scheme for semiconductors and display manufacturing ecosystem, with uniform fiscal support of 50 percent of project cost for all technology nodes under the ambitious programme.
Union Minister Anurag Thakur said the modifications will strengthen the semiconductor scheme, thus raising capacities within the country, encouraging investments, and creating employment opportunities.
"Under modified programme, a uniform fiscal support of 50 percent of project cost shall be provided across all technology nodes for setting up of Semiconductor Fabs," an official release said.
"The programme has attracted many global semiconductor players for setting up fabs in India. The modified programme, will expedite investments in semiconductor and display manufacturing in India," it added.
On the basis of discussion with potential investors, it is expected that work on setting up of the first semiconductor facility will commence soon, the release said.
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