US, Chinese solar companies want to set up manufacturing plants in India under PLI scheme
Solar module manufacturers from US and China have written to the government to set up local manufacturing plants in India under the recently unveiled PLI scheme.
New Delhi: Manufacturers from US and China are warming up to the government’s Production-Linked Incentive (PLI) scheme. China’s LONGi Star and Trina Star, which manufacture solar panels, wafers and modules are reportedly in talks with Indian companies to set shop in India under the PLI scheme.
The Union Cabinet chaired by Prime Minister Narendra Modi cleared the Rs 4,500-crore scheme for solar modules. PLI schemes seek to boost local manufacturing and exports from India by giving incentives to manufacturers. The scheme is likely be rolled out in the next 15 days, according to Economic Times.
1366 Technologies and First Solar which are both US-based companies have also shown interest to set up manufacturing units in India under the scheme. Indian companies which wrote to the government to set up plants under the scheme include Adani Solar, Vikram Solar and Acme Solar, according to the report.
The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.
It is designed to create complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially.
Selection of companies for the Scheme shall be done so as to incentivize manufacturing of components or sub-assemblies which are not manufactured in India presently with sufficient capacity. Mere assembly of finished goods shall not be incentivized.
Companies meeting the pre-qualification criteria for different target segments will be eligible to participate in the Scheme. Incentives shall be open to companies making brownfield or green field Investments.
Thresholds of cumulative incremental investment and incremental sales of manufactured goods over the base year would have to be met for claiming incentives. An entity availing benefits under any other PLI Scheme of Govt.
India will not be eligible under this scheme for the same products but the entity may take benefits under other applicable schemes of Govt. of India or schemes of State governments.
The Scheme will be implemented as a pan India scheme and is not specific to any location, area or segment of population. A number of global and domestic companies, including a number of MSMEs are likely to benefit from the Scheme.
Source: timesnownews
