Parliament Reveals Solar Equipment Manufacturers Receive No Funds From Rs 24,000 Crore PLI Scheme By February End

Key Takeaways

Solar equipment manufacturers have yet to receive funds from the Rs 24,000-crore PLI scheme until February 2026.
The scheme aims to boost high-efficiency solar PV module manufacturing with an awarded capacity of over 48,000 MW.
Progress in upstream manufacturing components faces challenges due to reliance on imports and a developing domestic industry.

Fund Disbursement Status

The Ministry of New and Renewable Energy reported that solar equipment manufacturers in India have not received funding under the Rs 24,000-crore Production Linked Incentive (PLI) scheme as of February 2026. This initiative supports high-efficiency solar photovoltaic (PV) modules.

In a recent statement to the Lok Sabha, Union Minister for New and Renewable Energy Pralhad Joshi disclosed that letters of award have been granted to establish around 48,337 MW of fully or partially integrated solar PV module manufacturing. However, no funds have been released yet because the scheme stipulates that funds will only be available one year after the commissioning of the awarded projects.

As of now, approximately 30 GW of solar PV module manufacturing capacity, 10.5 GW of solar PV cell manufacturing capacity, and 2 GW of ingot-wafer manufacturing capacity have been set up through the scheme. This includes around 3.4 GW of fully integrated thin-film solar PV module capacity. Notably, 4 GW of integrated capacity for solar cells and modules was commissioned in October 2025.

Challenges in Upstream Manufacturing

The minister highlighted that the slower progress in upstream components, such as polysilicon and wafer manufacturing, stems from multiple challenges. These include limited domestic experience and the concentration of the global supply chain for upstream solar PV components in a few countries. Consequently, the domestic ecosystem for these segments is still evolving.

Joshi acknowledged the heightened dependency on imported raw materials, specialized manufacturing equipment, and technical expertise in upstream solar PV manufacturing. To address this, the PLI scheme encourages vertically integrated manufacturing across the entire production chain—polysilicon, wafers, cells, and modules—offering greater incentives for deeper integration.

Support for Ancillary Manufacturing

In addition to promoting solar PV modules, the government is also supporting domestic manufacturing of ancillary inputs required for solar module production. This includes solar glass, aluminum frames, encapsulants, and tinned copper interconnects. Several policy measures have been implemented to aid this sector, including imposing basic customs duties on finished products and providing exemptions on specified inputs.

To further bolster domestic capabilities, the ministry has launched various capacity-building and skill-development initiatives addressing workforce needs across the renewable energy sector. These efforts aim to enhance domestic manufacturing capabilities and gradually reduce reliance on imports in the long run.

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