Borosil Renewables, Sterling and Wilson rise as Cabinet approves PLI for solar PV modules

The Union Cabinet on Wednesday approved changes in the production-linked incentive (PLI) scheme and approved the second tranche of solar power PV modules.

Around Rs 19,500 crore has been allocated for the second tranche of the Solar PV modules. The second part of the PLI for solar PV modules aims to increase the production of low-cost solar energy. Companies will have to meet minimum performance criteria. The government expects to see a total module manufacturing capacity of 65 Giga Watts from this outlay, Indu Shekhar Chaturvedi, Secretary, Ministry for New & Renewable Energy told CNBC-TV18.

“An investment of about Rs 94,000 crore and direct employment to about two lakh people and direct employment to about seven lakh people and these capacities when they come up would not only make India self-sufficient in solar manufacturing, but we will also have spare capacities to export,” said Chaturvedi.

He further added that India has taken a number of steps to build solar manufacturing. Customs duty enhancement, enhancement of modules on cells, and insisting on domestic content requirements in government schemes have benefited the sector and now the PLI scheme will be the clinching factor in making India self-reliant on solar energy.

Solar stocks traded in a mixed bag today on the BSE. Shares of Sterling and Wilson gained over 6 percent from the previous closed on the BSE and closed at Rs 320. Borosil Renewables also traded green and rose by 2.41 percent from the previous close on the BSE.

Shares of Synergy Green Industries declined over 4 percent and closed at Rs 150. Ujaas Energy declined by over 2 percent. While WAA Solar spiked over 5 percent and closed at Rs 43. Surana Solar also traded green and closed up by 1.36 percent.

After the approval, brownfield companies can utilise the scheme for setting up new projects. The highest incentive will be for the first year, aiming to make the solar industry competitive in five years.