Government May Extend Deadline for Solar PLI Projects

According to news reports, the Indian government is considering extending the deadline for companies setting up solar photovoltaic (PV) module manufacturing units under the Production Linked Incentive (PLI) scheme. The decision comes as progress on the ground remains limited. As of now, only 25.5 GW has been commissioned out of the total 130.7 GW awarded, according to data from the Ministry of New and Renewable Energy (MNRE).

Status of PLI Implementation

Under the PLI scheme, selected companies were required to commission integrated or partially integrated manufacturing facilities by April 2026. The incentives, once commissioned, were to be disbursed over five years. So far, only around 20% of the targeted capacity has been set up.

India currently has a total solar module manufacturing capacity of nearly 90 GW, of which 17.5 GW has been developed through the PLI scheme. In terms of solar cell capacity, India has 25 GW, with 6 GW added under the PLI framework.

Possible Deadline Extension

MNRE is evaluating whether to provide a uniform extension or allow adjustments on a case-by-case basis. Any proposed change will require clearance from the Department for Promotion of Industry and Internal Trade (DPIIT).

Challenges Faced by Companies

Delays have been attributed to a range of issues. Companies have cited slow technology transfer and complications with supply chains. Many of the machines used in module manufacturing are imported from China. These machines often require support from Chinese technicians for installation, training, and repair. Restrictions and delays in issuing visas for these technicians have caused further setbacks.

Additionally, price fluctuations and shortages in materials like polysilicon, ethylene vinyl acetate, backsheets, and aluminium have impacted project timelines. India still imports most upstream components like wafers, ingots, and polysilicon due to limited domestic production.

Companies Involved

The first phase of the solar PLI scheme was launched in September 2021, followed by a second phase in September 2022. Companies selected include Reliance Industries, First Solar, Waaree Group, Avaada, JSW, ReNew, and Grew Energy. SECI is the implementing agency.

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Conclusion

The government is reviewing the timeline as commissioned capacity remains far below target. A decision on deadline extensions is expected after consultations.

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