Incentives for solar energy sector
Why is it in news?
- The Union Cabinet approved two production-linked incentive schemes for white goods (air-conditioners and LED lights) and high-efficiency solar photovoltaic modules.
- The Cabinet approved Rs. 6,238-crore PLI scheme for air-conditioners and LEDs.
- Objective: To make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.
- It is designed to create complete component ecosystem in India and make India an integral part of the global supply chains.
- The scheme would extend an incentive of 4% to 6% on incremental sales of goods made in India for five years.
- The scheme was estimated to lead to incremental investment of Rs. 7,920 crore over five years and lead to production worth Rs. 1.68 lakh crore, as well as lead to 4 lakh jobs.
- The Cabinet approved a proposal of the Ministry of New and Renewable Energy for a PLI scheme for high efficiency solar PV modules with an outlay of Rs. 4,500 crore.
Source: The Hindu