Jindal, Shirdi Sai, and Reliance Win IREDA’s Solar Module Manufacturing PLI Auction
The tender for a minimum of 10 GW was floated in May this year
The Indian Renewable Energy Development Agency (IREDA) has announced the list of successful bidders for setting up manufacturing capacities for a minimum of 10 GW of vertically-integrated high-efficiency solar modules under the production-linked incentive (PLI) program.
IREDA has announced PLI totaling ₹44.50 billion (~$598 million) for a total capacity of 10,483 MW.
Jindal India Solar Energy was awarded a PLI of ₹13.90 billion (~$186.8 million), and Shirdi Sai Electricals a PLI of ₹18.75 billion (~$252 million), for a capacity of 4 GW each. Reliance New Energy Solar was awarded a PLI of ₹11.90 billion (~$160 million) for a capacity of 2,483 MW, according to Mercom sources.
The PLI awarded to the companies is the total of the maximum amount that can be awarded to the companies on a yearly basis (taking into consideration various factors).
The manufacturing capacity and PLI were allocated to the eligible applicants as per the bucket filling mechanism keeping in view the overall PLI limit of ₹45 billion ($601 million) and the PLI requested by the bidders.
IREDA also announced the waiting list of beneficiaries.
Last month, IREDA had announced the list of 16 bidders who were shortlisted and the respective PLI requested by them.
In May this year, IREDA had invited bids to set up 10 GW of high-efficiency solar module manufacturing capacities. The tender followed the Union Cabinet’s approval to implement the PLI program to achieve gigawatt-scale solar module manufacturing capacity with an outlay of ₹45 billion (~$605 million).
Later, IREDA amended certain conditions in the request for selection (RfS) issued for the tender.
The tender had received a strong response from the bidders and was oversubscribed by 5.48 times. The bidders had quoted a total capacity of 54.8 GW for polysilicon, ingot-wafer, cell, and module manufacturing.
The interested party must ensure that the manufacturing capacities achieve the minimum level of integration of cells and modules, meet the minimum manufacturing capacity requirements, and follow the minimum threshold performance parameters of module efficiency as per the program guidelines.
Unless approved by the Ministry of New and Renewable Energy (MNRE), the successful bidder will not be allowed to invest in, merge with, or acquire projects of other successful applicants who have been awarded the incentive under this program until this program’s applicability (five years from the scheduled date of commissioning).
Last November, the central government approved the PLI plan in ten critical sectors to enhance India’s manufacturing capabilities and exports under the Atmanirbhar Bharat initiative. The government had said that it would allocate ₹1.45 trillion (~$19.61 billion) for the ten critical sectors over the next five years. These vital sectors include high-efficiency solar PV modules, advanced chemistry cell batteries, and automobiles and auto components.
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