The Indian Government is set to allocate an additional Rs195bn ($2.62bn) in its Union Budget to support the manufacturing of solar modules in the country.

Finance Minister Nirmala Sitharaman made the announcement while presenting the Union Budget for 2022-23.

With this allocation, the government aims to boost the domestic production of solar power generation equipment and batteries.

The move is expected to support India’s global efforts to combat the climate crisis.

In its budget summary, the government said: “To facilitate domestic manufacturing for the ambitious goal of 280GW of installed solar capacity by 2030, additional allocation of Rs195bn for a production-linked incentive (PLI) for the manufacturing of high-efficiency modules, with priority to fully integrate manufacturing units to solar photovoltaic (PV) modules, will be made.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

See Also:

ReNew Power CEO Sumant Sinha welcomed the allocation, noting that it is more than four times what was allocated to solar module manufacturing in India last year.

Sinha said: “This will provide great impetus to support self-reliance while working towards the goal of achieving 280GW of solar deployment by 2030.”

Minister Sitharaman added that financial support would be allocated for distributed renewable energy projects in border areas under Vibrant Village Programme.

The government will also issue ‘green bonds’ for environmentally friendly projects and to raise capital to support government projects as the country aims to make its economy less carbon-intensive.

The budget also includes the introduction of a battery swapping scheme for establishing charging stations ‘at scale’ with private companies.

In addition, the private sector will be encouraged to develop sustainable business models for ‘Battery or Energy as a Service’ to make India’s electric vehicle (EV) ecosystem more efficient.

In his budget speech, Sitharaman announced four pilot projects for coal gasification and converting coal into chemicals, which will be subject to financial and technical viability.