The performance-linked incentive scheme for high-efficiency solar photovoltaic modules will lead to investments of more than Rs 14,000 crore to create a manufacturing capacity of 10,000 MW, Prime Minister Narendra Modi said.
Speaking to senior executives from the power sector on a virtual platform, he said that this influx of cash will lead to widespread demand for solar components in the coming future.
“It is expected that in the coming 5 years, demand worth 17,500 crores will be created. This demand will go a long way in giving impetus to the domestic manufacturing setup in the country,” Modi said, adding that he wants to make India a global manufacturing hub for renewables.
Scheme to solve discom mess still on: Modi
The Prime Minister also assured the industry stakeholders that the government is taking a look at a solution for problems related to the financial health of the distribution companies.
To that end, the Centre will reduce entry barriers and free the segment from licenses, he said.
“Throughout the country, we are taking a look at electricity supply and the distribution network to allay the problems with them. For this, a discom-related policy and regulatory framework are in the works,” Modi said.
Finance minister Nirmala Sitharaman had on February 1 announced that a framework will be put in place to give electricity consumers alternatives to choose from among more than one distribution company.
