In her fourth budget speech on February 1, Finance Minister Nirmala Sitharaman announced an allocation of Rs 19,500 crore to augment solar module manufacturing under the production linked incentive (PLI) scheme.

“To facilitate domestic manufacturing for the ambitious goal of 280 gigawatt of installed solar capacity by 2030, additional allocation of Rs 19,500 crore for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules will be made,” Sitharaman said in her speech on February 1.

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Sitharaman had earlier announced an outlay of Rs 1.97 trillion for PLI schemes across 13 key sectors, including electronics manufacturing, automobiles and auto components, specialty steel, textile, drone components, pharma, and telecom, among others. The schemes were announced to generate employment and develop domestic manufacturing.

The Narendra Modi government introduced three PLI schemes in March 2020. Ten new PLI schemes were announced in November 2020. Allocation for solar modules will further boost the government’s plan for the next 25 years.

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Sitharaman said on February 1: “This Union Budget seeks to lay the foundation and give a blueprint of the economy over ‘Amrit Kal’ of next 25 years -- from India at 75 to India at 100. It builds on the vision drawn in the Budget of 2021-22. Its fundamental tenets, which included transparency of financial statement and fiscal position, reflect the government’s intent, strengths, and challenges.”

She said inclusive development, productivity enhancement, energy transition, and climate action would be the four pillars of development.

First Published:Feb 1, 2022 1:37 PM IST