PLI I scheme Chinese and US solar companies want to set up manufacturing plants in India under the PLI scheme

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US and Chinese Solar Companies Want to Set Up Manufacturing Plants in India Under PLI Program | Photo credit: Thinkstock

New Delhi: Manufacturers in the United States and China are preparing for the government’s Production Incentive Program (PLI). Chinese companies LONGi Star and Trina Star, which manufacture solar panels, wafers and modules, are said to be in talks with Indian companies to locate in India under the PLI program.

The Union Cabinet chaired by Prime Minister Narendra Modi has authorized the 4,500 crore rupee program for solar modules. PLI programs seek to stimulate local manufacturing and exports from India by providing incentives to manufacturers. The program is expected to roll out within the next 15 days, according to Economic Times.

1366 Technologies and First Solar, both of which are US-based companies, have also expressed interest in establishing manufacturing units in India as part of this program. Indian companies that have written to the government to set up factories under the program are Adani Solar, Vikram Solar and Acme Solar, according to the report.

The main objective of the PLI program is to make manufacturing in India competitive on a global scale by removing sectoral handicaps, creating economies of scale and ensuring efficiency gains. It is designed to create a complete ecosystem of components in India and make India an integral part of global supply chains. The program is expected to attract global investment, generate large-scale employment opportunities and significantly improve exports.

The selection of companies for the program will be made in such a way as to encourage the manufacture of components or sub-assemblies which are not currently manufactured in India with sufficient capacity. The simple assembly of finished products should not be encouraged. Companies meeting the prequalification criteria for different target segments will be eligible to participate in the program. The incentives will be open to companies making investments in brownfield sites or in green zones.

The thresholds for cumulative additional investment and additional sales of manufactured goods in the base year should be met to apply for incentives. An entity enjoying the benefits of any other government PLI plan. India will not be eligible under this scheme for the same products, but the entity may receive benefits under other applicable government schemes. India or state government projects. The program will be implemented as a pan-Indian program and is not specific to any place, area or population segment. A number of global and national companies, including a number of MSMEs, are likely to benefit from the program.

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