{"id":117947,"date":"2026-08-08T10:59:46","date_gmt":"2026-08-08T05:29:46","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=117947"},"modified":"2026-08-08T10:59:46","modified_gmt":"2026-08-08T05:29:46","slug":"pli-for-polysilicon-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/pli-for-polysilicon-scheme\/","title":{"rendered":"PLI for Polysilicon Scheme &#8211; Government Moves to Fill India&#8217;s Solar Manufacturing Gap"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>PLI for Polysilicon Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry of New and Renewable Energy is preparing a Production Linked Incentive scheme for polysilicon manufacturing, aiming to fill a critical gap in India&#8217;s solar supply chain where the country relies entirely on imports.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>The Solar Manufacturing Value Chain<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Solar photovoltaic manufacturing involves a sequence of stages, moving from raw material to the finished panel:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Polysilicon: High-purity silicon, the starting point of the chain, produced through a chemical and refining process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Ingots: Polysilicon is melted and formed into solid blocks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Wafers: Ingots are sliced into thin wafers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Solar cells: Wafers are processed into cells that convert sunlight into electricity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Modules or panels: Cells are assembled into finished solar panels.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first three stages form the upstream segment, while cells and modules constitute the downstream segment.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>India&#8217;s Position in the Chain<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has expanded rapidly at the downstream end but remains weak upstream:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Solar module manufacturing capacity: More than 213 GW per annum.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Solar cell manufacturing capacity: Around 32 GW.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Ingot and wafer capacity: Limited, though expected to reach 80 GW by June 2028.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Polysilicon capacity: Effectively nil, with complete dependence on imports, primarily from China.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This imbalance means that even as India builds large module capacity, the foundational raw material continues to come from abroad, leaving the supply chain exposed to external disruption.<\/span><\/li>\n<\/ul>\n<p>Read about <strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/pli\/\" target=\"_blank\">PLI Scheme<\/a><\/strong><\/p>\n<h2 style=\"text-align: justify;\"><strong>Importance of Polysilicon<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is the starting material for crystalline silicon solar cells, which dominate the global market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete import dependence creates strategic vulnerability, especially given the concentration of global supply in China.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any disruption in polysilicon supply can stall the entire downstream chain, regardless of domestic module capacity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High-purity polysilicon is also used in the semiconductor industry, making it relevant to India&#8217;s chip manufacturing ambitions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Because polysilicon production is essentially a chemical and refining process rather than a conventional electronics activity, the government is considering treating it as an independent industry rather than merely a part of the solar value chain.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>News Summary: Proposed PLI for Polysilicon<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry of New and Renewable Energy (MNRE) is working on a <\/span><b>dedicated Production Linked Incentive (PLI) scheme for polysilicon manufacturing<\/b><span style=\"font-weight: 400;\">. The proposed scheme aims to:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Promote domestic polysilicon manufacturing, where investments have not materialised despite existing incentives.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Support more than <\/span><b>10 GW<\/b><span style=\"font-weight: 400;\"> of manufacturing capacity.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Operate separately from the existing PLI scheme for solar PV modules.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme&#8217;s size and structure have not yet been disclosed, and its announcement has been delayed.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Need for a Separate Scheme<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The existing Solar PV Module PLI covers the entire value chain, from polysilicon, ingots and wafers to solar cells and modules.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, implementation has been uneven:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Solar cell and module manufacturing have expanded significantly.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Some ingot manufacturing capacity has been established.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">No commercial polysilicon manufacturing has materialised.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government believes polysilicon requires a separate policy because:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It is a chemical refining industry rather than conventional manufacturing.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It has strategic importance beyond solar, particularly for semiconductors.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Expansion of India&#8217;s Solar Manufacturing Ecosystem<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Solar cell manufacturing capacity is expected to increase from <\/span><b>32 GW<\/b><span style=\"font-weight: 400;\"> to around <\/span><b>100 GW<\/b><span style=\"font-weight: 400;\"> within a year.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ingot and wafer manufacturing capacity is projected to reach at least <\/span><b>80 GW<\/b><span style=\"font-weight: 400;\"> by <\/span><b>June 2028<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An Approved List of Models and Manufacturers (ALMM) has been introduced for ingots and wafers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expanding upstream manufacturing has become essential as India tightens domestic sourcing requirements for solar cells.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Round-the-Clock (RE-RTC) Renewable Energy<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SECI&#8217;s latest RE-RTC tender discovered a tariff of <\/span><b>Rs. 5.25\/unit<\/b><span style=\"font-weight: 400;\">. The project provides:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>90% assured power availability<\/b><span style=\"font-weight: 400;\"> in every time block.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Around <\/span><b>50% daytime solar generation<\/b><span style=\"font-weight: 400;\">, with the remaining supply met through other renewable sources and energy storage.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Officials noted that:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The tariff is approaching nuclear power tariffs.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Developers are confident of supplying electricity at this inflation-resistant price for the next <\/span><b>25 years<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Impact on DISCOMs<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lower renewable energy prices are helping distribution companies reduce procurement costs. Over the past three years:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Average power purchase costs have either declined or remained stable after rising sharply earlier.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Combining solar, wind, storage and RE-RTC could reduce average procurement costs from around <\/span><b>Rs. 5.20\/unit<\/b><span style=\"font-weight: 400;\"> to <\/span><b>Rs. 4.85\/unit<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lower electricity costs are expected to:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Improve industrial competitiveness.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Support data centre growth.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Accelerate India&#8217;s green transition.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Broader Clean Energy Push<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Officials also highlighted the following initiatives:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India has crossed <\/span><b>300 GW<\/b><span style=\"font-weight: 400;\"> of non-fossil fuel power capacity and aims to reach <\/span><b>500 GW by 2030<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Green ammonia is being supplied to fertiliser plants, while green hydrogen is being supplied to oil refineries to create early demand.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Green methanol pilots are underway in shipping, supported by a SECI tender for <\/span><b>5 lakh tonnes<\/b><span style=\"font-weight: 400;\"> to aggregate demand.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pilot projects are also underway in:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Transport.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Steel (Direct Reduced Iron plants).\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India is expanding cross-border energy cooperation through:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Solar projects with Bhutan.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Discussions on a regional South Asian electricity market.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Significance of the Polysilicon Push<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Import substitution: Reduces dependence on China for a critical raw material.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supply chain security: Improves resilience against geopolitical and trade disruptions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Semiconductor ecosystem: High-purity polysilicon supports India&#8217;s semiconductor ambitions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher domestic value addition: Increases manufacturing value retained within India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Energy security: Strengthens the foundation of India&#8217;s renewable energy transition.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Key Challenges<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capital intensity: Large investments and long gestation periods.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High energy consumption: Refining polysilicon is energy-intensive and costly.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Technology dependence: Advanced purification technology is controlled by a limited number of global firms.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Competition from China: Chinese manufacturers benefit from economies of scale and lower production costs, making domestic competitiveness difficult without sustained policy support.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Environmental concerns: Manufacturing requires careful management of chemical by-products and emissions.<\/span><\/li>\n<\/ul>\n<p><strong>Source: <a href=\"https:\/\/indianexpress.com\/article\/business\/boost-to-solar-manufacturing-government-weighs-incentive-for-polysilicon-manufacturing-10822828\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.downtoearth.org.in\/amp\/story\/energy\/mnre-weighs-support-scheme-for-polysilicon-to-back-10-gw-capacity-in-solar-manufacturing\" target=\"_blank\" rel=\"nofollow noopener\">Down to Earth<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Polysilicon manufacturing in India is set for a boost as the government weighs a PLI scheme to reduce complete import dependence and strengthen the solar value chain.<\/p>\n","protected":false},"author":21,"featured_media":117962,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,9373,22,59],"class_list":["post-117947","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-mains-articles","tag-polysilicon","tag-upsc-current-affairs","tag-upsc-mains-current-affairs-tag","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/117947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=117947"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/117947\/revisions"}],"predecessor-version":[{"id":117958,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/117947\/revisions\/117958"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/117962"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=117947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=117947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=117947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}