PLI scheme will push India towards becoming export hub for solar PV cells: RK Singh

Finance Minister Nirmala Sitharaman, on Tuesday, in her Budget speech, announced an allocation of Rs 19,500 crore to give a boost to solar module manufacturing as part of the government’s flagship profit linked incentive (PLI) scheme. She expects the scheme to generate 60 lakh new jobs and an additional 30 lakh jobs in the next 5 years.

CNBC-TV18 caught up with RK Singh, Union Power Minister, for his take on Tuesday's announcements and how it would benefit the sector.

Singh explained that a PLI scheme of Rs 19,500 will lead to a lot of investments and generate a lot of jobs in the country. He believes that the scheme will aid in transforming India into an export hub for solar PV (photovoltaic) cells.

He said, "This PLI scheme of Rs 19,500 crore will lead to an investment of at least Rs 1.50 lakh crore and create a lot of jobs in our country. We will also emerge as an export hub; we will be exporting solar PV cells and other items."

Elaborating on green bonds, he mentioned that it will enable energy transition. He explained that green bonds will help in bringing down the cost of funds for renewable energy, which will in turn make India more competitive. However, he added that India is in need of funds for energy storage, green corridor phase-2 and other renewable projects.

Singh explained, “We need funds for green corridors. We had green corridor phase-I, which is almost complete, and now we have green corridor phase-II. Some provision has already been made for green corridor phase-II. We are also going in for setting up 10,000 megawatts of capacity in Ladakh. We are also setting up a green energy corridor to evacuate that power along with storage, which will cost another about Rs 24,000 crore odd, out of this, we propose to give 40 percent as grant, so that will be about Rs 9,800 crore. So the green bonds will enable energy transition.”

On green hydrogen policy, he said that the government will be bringing it out in two stages. He explained that as part of it, the government will be aggregating demand for green hydrogen  and green ammonia first. Stage 2 will follow suit later as it still requires the approval of EFC (Expenditure Finance Committee).

“As far as hydrogen policy is concerned, we are bringing it out in two stages. The first stage is what we can do right away. So that will be issued in 10-15 days, it is finalised, we have had stakeholder consultations, with the states and with the industry and we have finalised it. So 10-15 days max and stage one will be out," he said.

Singh further added, "Then we will be sort of aggregating the demand and coming out with bids for green hydrogen and green ammonia. Stage two of the policy will come up later, it is in the process of EFC approvals, etc.”

 

Also Read: Budget 2022 boosts allocation to solar PLI scheme by Rs 19,500 crore