IREDA Invites Bids to Set Up Solar Module Manufacturing Capacities Under PLI Program

The Indian Renewable Energy Development Agency (IREDA) has invited bids for setting up manufacturing capacities for vertically integrated high-efficiency solar modules under the production-linked incentive (PLI) program.
Manufacturers setting up any solar production facilities will be eligible for applying for the incentive under the program. The interested party has to ensure the manufacturing capacities achieve the minimum level of integration of cells and modules, meet the minimum manufacturing capacity requirements, and follow the minimum threshold performance parameters of module efficiency as per the program guidelines.
The last date to submit the bids is June 30, 2021, and bids will be opened on July 1.
Last month, the President of India finally approved the PLI program, which aims to promote the manufacturing of high-efficiency solar PV modules in India and reduce import dependence on renewable energy.
Selected bidders will have to furnish a performance bank guarantee of ?45,000 (~$617)/MW for cell and module manufacturing capacity, 70,000 (~$959)/MW for ingot-wafer, cell, and module manufacturing capacity, and ?110,000 (~$1,507)/MW for polysilicon, ingot-wafer, cell, and module manufacturing capacity.
To participate in the bidding process, the bidder may form a special purpose vehicle (SPV) for setting up the manufacturing facility once the letter of award is issued by IREDA. However, such an SPV should be formed within 90 days from when the letter of award is issued. In the case of a delay of more than 90 days, the letter of award would be withdrawn and allocated to entities on the waiting list.
The bidder’s net worth for cell and module manufacturing capacity at the time of application (minimum value to be established) should be ?850 million (~$11.65 million)/GW, and it should be ?2.35 billion (~$32.19 million)/GW (to be established mandatorily) within 90 days from the issuance of the letter of award. The bidder’s net worth for ingot-wafer, cell, and module manufacturing capacity should be 1.4 billion (~$19.18 million) at the time of application and ?3.85 billion (~$52.75 million) within 90 days from the issuance of the letter of award. Similarly, for a polysilicon, ingot-wafer, cell, and module manufacturing capacity, the bidder’s net worth should be 2.20 billion (~$30.14 million)/GW at the time of application and ?6.05 billion (~$82.89 million)/GW within 90 days from the issuance of the letter of award.
If the bidder fails to form an SPV as per the Indian Companies Act, 2013, and establish the net worth as prescribed, the entire amount of the performance bank guarantee will be encashed.
Unless approved by the Ministry of New and Renewable Energy (MNRE), the successful bidder will not be allowed to invest in, merge with, or acquire projects of other successful applicants who have been awarded the incentive under this program until this program’s applicability (five years from the scheduled date of commissioning).
In November last year, the government had said in a notification that it would allocate 1.45 trillion (~$19.61 billion) for the ten critical sectors over the next five years. Some of these critical sectors include- high-efficiency solar PV modules, advanced chemistry cell batteries, and automobiles and auto components.
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