IREDA INVITES BIDS FOR RS. 4500 CRORE SOLAR PLI SCHEME

THE CONTEXT: Indian Renewable Energy Development Agency Ltd. (IREDA), a PSU under the Ministry of New & Renewable Energy (MNRE) has invited bids from solar module manufacturers for setting up solar manufacturing units under the central government’ Rs. 4,500 crore Production Linked Incentive (PLI) scheme

Analysis:

• MNRE has appointed IREDA as the implementing agency for the scheme.
• The Union Cabinet had earlier approved Rs. 4,500 crore scheme to boost domestic manufacturing of solar Photo Voltaic ( PV) modules.
• The applicants are required to set-up either brownfield or Greenfield manufacturing facility for the entire capacity allotted under the scheme.
• The PLI will be disbursed to the successful applicants annually for a period of five years.
• Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic industry has limited operational capacities of solar PV cells and modules.
• The National Programme on High Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity and as such reinforce the Atmanirbhar Bharat initiative

ABOUT IREDA

• Indian Renewable Energy Development Agency Limited (IREDA) was established on 11th March, 1987 as a Public limited Government Company under the Companies Act, 1956 and it promotes, develops and extends financial assistance for Renewable Energy and Energy Efficiency/Conservation Projects.
• IREDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as Non-Banking Financial Company (NFBC) with Reserve Bank of India (RBI).
• The main objectives of IREDA are :
  • To give financial support to specific projects and schemes for generating electricity and / or energy through new and renewable sources and conserving energy through energy efficiency.
  • To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency / conservation projects.
  • To increase IREDA`s share in the renewable energy sector by way of innovative financing.
  • Improvement in the efficiency of services provided to customers through continual improvement of systems, processes and resources.
  • To strive to be competitive institution through customer satisfaction.

National Programme on High Efficiency Solar PV Modules

• The Union Cabinet recently approved the Production Linked Incentive Scheme called the National Programme on High Efficiency Solar PV Modules.
• The programme aims to achieve manufacturing capacity in Giga Watt scale in high efficiency solar PV modules.
• The total outlay of the scheme has been estimated as Rs 4,500 crores.
• The programme aims to bring additional 10,000 MW capacity of integrated solar PV manufacturing units in India.
• It will bring in direct investment of Rs 17,200 crores in solar Photo Voltaic manufacturing projects.
• It will stimulate research and development that will achieve higher efficiency in solar PV modules.