RIL New Energy, Jindal India, Adani, and Shirdi Sai Electricals among lowest bidders for government’s PLI Scheme

Jindal India Solar Energy, Reliance New Energy, Adani Infrastructure and Shirdi Sai Electricals are among the companies that emerged as the lowest bidders for the Rs 4,500 crore production linked incentive (PLI) scheme of the government for gigawatt-scale solar manufacturing in the country.

The government-approved PLI scheme is expected to add 10 gigawatts (GW) of high-efficiency integrated solar photovoltaic (PV) manufacturing plants and bring a direct investment of around Rs 17,200 crore in solar PV manufacturing.

Jindal India Solar Energy, owned by Jindal Polyfilms, made the most competitive bid by seeking the least production-linked incentive (PLI) support for 4 GW of fully integrated module manufacturing setup. It quoted PLI bid of Rs 1,390 crore, as per NSEFI data.

Shirdi Sai Electricals bid Rs 1,875 crore, Reliance New Energy Solar Rs 1,917 crore and Adani Infrastructure Rs 3,600 crore emerged as the other competitive bidders, taking into account their PLI bid, level of integration, and intended manufacturing capacity.

All four players sought incentives for a maximum capacity of 4 GW each, offering the full extent of integration up to polysilicon manufacturing.

However, as per the PLI Scheme document, the maximum incentive to a single manufacturer will be tied to 2 GW of its annual production capacity or half of the planned output of its facility, whichever is lower.

That cap appears to make all the four players (Jindal India Solar, Shirdi Sai Electricals, Reliance and Adani) incentive beneficiaries for 2 GW each as their cumulative incentives in that case aggregate to INR 4,391 crore.

The selection of bidders under the solar PLI scheme has been made on three parameters – the extent of integration, proposed manufacturing capacity and the performance efficiency of the modules.

It should be noted that there are four stages in module making: polysilicon, wafers, cells and modules. Currently, India’s existing 15 GW production capacity has no polysilicon or wafer production capacity.

As per the report, PLI disbursement to the selected bidders under the scheme will start after one year of commissioning on an annual basis based on sales, efficiency of modules, and local sourcing. No PLI will be given if the selected bidders fail to fulfill commitments made under the selection criteria.

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