Cabinet approvals on April 7, 2021

On April 7, 2021, the Union Cabinet chaired by Prime Minister Narendra Modi approved several key initiatives. They are

• Approval for Production Linked Incentive (PLI) Scheme ‘National Programme on High-Efficiency Solar PV Modules’.
• Approval for PLI Scheme for White Goods (Air Conditioners & LED Lights).
• MoU between India & Japan for Academic Research Cooperation & Exchange.

PLI Scheme for Solar Manufacturing

The Union Cabinet approved the Ministry of New & Renewable Energy’s proposal for the implementation of INR 4, 500 Crore PLI Scheme ‘National Programme on High-Efficiency Solar PV (Photovoltaic) Modules’

• It aims to achieve the manufacturing capacity of the Gigawatt (GW) scale in high-efficiency solar PV modules.
• The National Programme on High-Efficiency Solar PV Modules aims to reduce import dependence in a strategic sector like electricity.
• Solar PV manufacturers will be selected through a bidding process.
• Incentives will be disbursed for 5 years post commissioning of solar PV manufacturing plants, on sales of high-efficiency solar PV modules.

PLI Amount

• Manufacturers will be rewarded for higher efficiencies of solar PV modules & also for sourcing materials from the domestic market.
• PLI amount will increase with increased module efficiency and increased local value addition.

Expected Outcomes

• Additional 10, 000 MW capacity of integrated solar PV manufacturing plants.
• Direct Investment of around INR 17, 200 Crore in Solar PV manufacturing projects.
• The demand of INR 17, 500 Crore over 5 years for ‘Balance of Materials’
• Direct employment of about 30, 000 people & indirect employments to about 20, 000 persons.
• Import substitution of around INR 17, 500 Crore every year.
• The impetus to Research & Development to achieve higher efficiency in solar PV modules.

PLI Scheme for White Goods 

The Union Cabinet chaired by Prime Minister Narendra Modi approved the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners & LED Lights) with a budgetary outlay of INR 6, 238 Crore.

• It will be implemented as a pan India scheme.
• A number of global and domestic companies, including a number of MSMEs are likely to benefit from the scheme.

Objective  

• To make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale & ensuring efficiencies.
• It is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially.

Key Points

• An incentive of 4% – 6% on incremental sales of goods manufactured in India for a period of 5 years to companies engaged in the manufacturing of Air Conditioners & LED Lights.
• Different segments have been set apart for different types of components separately to specifically target global investments into desired areas.
• Selection of companies for the scheme will be done to incentivize the manufacturing of components or sub-assemblies which are not manufactured in India at present with sufficient capacity.
• Mere assembly of finished goods will not be incentivized under the scheme.

Eligibility

• Companies which meet the pre-qualification criteria for different target segments will be eligible to participate in the Scheme.
• Incentives will be open to companies making brownfield or greenfield investments.
• In order to claim incentives, farms have to meet thresholds of cumulative incremental investment & incremental sales of manufactured goods over the base year.

Standards 

• Companies will have to meet the BIS (Bureau of Indian Standards) & BEE (Bureau of Energy Efficiency) Quality Standards for sales into the domestic market & applicable standards for global markets.

Estimates

It is estimated that over the period of five years, PLI Scheme will lead to an incremental investment of INR 7, 920 Crore

• incremental Production worth INR 1, 68, 000 Crore
• exports worth INR 64, 400 Crore
• earn direct & indirect revenues of INR 49, 300 Crore and create additional four lakh direct & indirect employment opportunities.

PLI Scheme

• In Total, the cabinet has approved 9 out of 13 PLI schemes (worth INR 1.97 trillion) to date.
• The remaining 4 schemes (automobiles & auto components, Advanced Chemistry Cell (ACC) battery, Textile products, Specialty Steel) are in an advanced stage.

MoU between India, Japan

The Union Cabinet approved the Memorandum of Understanding (MoU) signed between National Atmospheric Research Laboratory (NARL), Department of Space, Government of India & Research Institute for Sustainable Humanosphere (RISH), Kyoto University, Kyoto, Japan for Academic & Research Cooperation and exchange.

• The MoU was signed in November 2020.

Features

• It will enable NARl& RISH to cooperate in areas of atmospheric science & technology, collaborative scientific experiments/campaigns and will help in modelling studies utilising the research facilities of RISH & NARL.
• It will help in the exchange of scientific materials, publications and information, joint research meetings and workshops, exchange of faculty members, students and researchers.

Mutual Utilization of facilities

The MoU will lead to mutual utilization of facilities such as Middle & Upper atmosphere (MU) radar in Shigaraki, Japan, the Equatorial Atmospheric Radar (EAR) in Kototabang, Indonesia & complementary instruments are available from RISH and the Mesosphere-Stratosphere-Troposphere (MST) radar and other instruments at NARL.

Background

• NARL & RISH have been collaborating in atmospheric science, technology & the exchange of scientists through an arrangement formalised in 2008 (through an MoU). The MoU was renewed in the year 2013.
• In November 2020, NARL & RISH signed a fresh MoU for promoting collaborative research.

Recent Related News:

i.February 25, 2021, The Cabinet also approved the PLI Scheme for IT hardware such as laptops, tablets, all-in-one PCs and servers.

ii.November 12, 2020, Union Cabinet approved Production Linked Incentive (PLI) scheme worth up to Rs 1.46 lakh crore for enhancing 10 key sectors.

About National Atmospheric Research Laboratory (NARL):

Director – Dr Amit Kumar Patra
Location – Andhra Pradesh

About Ministry of New & Renewable Energy
Minister of State (MoS)/IC – Raj Kumar Singh (Lok Sabha MP, Constituency – Arrah, Bihar)