Govt. Extends Solar PLI Scheme by Two Years to Boost Domestic Manufacturing

The Indian government has approved a two-year extension for commissioning projects under the Production-Linked Incentive (PLI) scheme for solar equipment manufacturing.

The move covers both phases of the scheme, launched in April 2021 and September 2022, giving manufacturers more time to overcome delays in procuring capital goods and other implementation challenges.

Valued at INR 48,120 crore, the PLI scheme is central to India’s push for high-efficiency solar photovoltaic (PV) modules and backward integration across the value chain, from polysilicon to modules. The extension, welcomed by industry players, is expected to ensure that projects under the scheme are completed effectively and within revised deadlines.

Investments under the PLI scheme have already crossed INR 48,000 crore, with the potential to create nearly 38,500 direct jobs in the domestic solar manufacturing sector. By strengthening domestic capacity, the initiative aims to cut India’s dependence on imports, boost employment, and accelerate progress toward its renewable energy targets.

Industry stakeholders see the government’s decision as a proactive response to operational hurdles, offering companies a stronger chance to scale up and deliver on capacity commitments. With added breathing space, manufacturers are expected to play a pivotal role in building India’s clean energy infrastructure, reinforcing the country’s transition toward a sustainable and self-reliant energy future.