In Short : The Indian government has granted a two-year extension for commissioning projects under the solar Production-Linked Incentive (PLI) scheme. The extension covers both phases of the scheme, allowing manufacturers additional time to address delays in procuring capital goods and other implementation challenges. Valued at ₹48,120 crore, the scheme supports domestic solar manufacturing, job creation, and India’s renewable energy targets.
In Detail : The Indian government has approved a two-year extension for commissioning projects under the Production-Linked Incentive (PLI) scheme for solar equipment manufacturing. The decision aims to provide developers and manufacturers extra time to overcome implementation challenges and ensure effective deployment of solar manufacturing capacities across the country.
This extension applies to both phases of the PLI scheme, launched in April 2021 and September 2022. The schemes are designed to promote high-efficiency solar photovoltaic (PV) modules and related components, with an emphasis on backward integration from modules to polysilicon.
The government’s move follows industry requests highlighting delays in procuring capital goods and other operational challenges. By providing additional time, manufacturers can address these hurdles and meet the revised commissioning deadlines effectively.
The PLI scheme has attracted substantial investments, amounting to ₹48,120 crore (approximately $6 billion) as of June 30, 2025. These investments are projected to generate nearly 38,500 direct jobs, boosting employment in the domestic solar manufacturing sector.
This extension aligns with the government’s broader efforts to strengthen domestic manufacturing capabilities and reduce reliance on imported solar components. It ensures that the PLI scheme achieves its intended objectives and supports the growth of India’s solar industry.
The PLI initiative is part of India’s strategy to enhance energy security and promote sustainable development. By incentivizing domestic production, the scheme contributes to the country’s renewable energy targets and helps reduce its carbon footprint.
The extension is expected to positively impact the solar manufacturing sector, giving manufacturers adequate time to complete projects and support the expansion of renewable energy infrastructure across India.
Industry stakeholders have welcomed the government’s decision, viewing it as a proactive step to address challenges and secure the successful implementation of the PLI scheme. Optimism is high regarding the future growth of solar manufacturing in the country.
With the extended timeline, manufacturers are better positioned to execute their projects, ensuring continued growth of the solar sector. This move reinforces India’s transition toward a sustainable, self-reliant energy future while fostering domestic innovation and industrial development.
