Strapline: This auction was conducted to set up 10 GW of high-efficiency solar module manufacturing capacities
The Indian Renewable Energy Development Agency (IREDA) welcomed the bids for setting up vertically integrated high-efficiency solar modules with manufacturing capacities of at least 10 GW under the production-linked incentive (PLI) program. Among the 16 qualified bidders, the IREDA will allocate the PLI to each of them. The tender received an overwhelming response and was oversubscribed by 5.68 times. The bidder with the lowest incentive corresponding to capacities bid will be preferred.
This comes after the Union Cabinet’s nod to implement the PLI program for gigawatt-scale solar module manufacturing capacity with an outlay of Rs. 45 billion (~$605 million).
The categories are:
Stage 1-4: Polysilicon, wafers, cells, and modules manufacturing. Jindal has quoted the lowest at Rs. 13.9 billion (~$185.07 million) for 4GW.
With the quoted total capacity of 56.8 GW.
Stage 2-4: Wafers, cells, and modules.
Coal India has the lowest PLI of Rs. 13.4 billion ($179 million).
Stage 3-4: Cells and modules.
Megha Engineering and Infrastructures has bid for the lowest PLI of Rs. 3.33 billion (~$44.34 million).
The distribution of manufacturing capacity and PLI will be done as per the bucket filling mechanism while ensuring the overall PLI limit for Rs. 45 billion ($601 million) and considering the PLI requested too.
The IREDA amended certain conditions in the request for selection (RfS) issued for the tender under this program. It stated interested parties should ensure that the manufacturing capacities:
- Achieve the minimum level of integration of cells and modules.
- Meet the minimum manufacturing capacity requirements.
- Follow the minimum threshold performance parameters of module efficiency as per the program guidelines.
The successful bidder cannot invest in, merge with, or acquire projects of other successful applicants awarded the incentive under this program five years from the scheduled date of commissioning, unless approved by the Ministry of New and Renewable Energy (MNRE).
In November 2020, the government issued a notification stating the allocation of Rs. 1.45 trillion (~$19.61 billion) over the next five years. The ten critical sectors included vital sectors like high-efficiency solar PV modules, advanced chemistry cell batteries, and automobiles and auto components.
