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PLI Scheme for Polysilicon Manufacturing

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August 10, 2026

Prelims: Current events of national and international importance | Economy 

Why in News?

Recently, The Union Ministry of New and Renewable Energy (MNRE) is examining a Production Linked Incentive (PLI) scheme to support domestic polysilicon manufacturing,

  • Polysilicon – An ultra-pure form of silicon used as the fundamental raw material for solar photovoltaic cells and semiconductor microchips.
  • Produced primarily through chemical purification processes like the Siemens process
  • Starting Feedstock – Polysilicon chunks or rods are melted to form large blocks or single crystal cylinders.
  • Ingot and Wafer Creation – These solid structures are sliced into thin silicon wafers, which become the base of photovoltaic cells.

Ingot is a large, solid cylinder-shaped block of purified, single-crystal silicon; Wafer is a thin, flat, circular slice cut from that ingot.

  • Usage– Not limited to solar; also used in semiconductors.

Polysilicon PLI Proposal

  • Target – support 10 GW capacity.
  • Treated as a separate industry since polysilicon is also used in semiconductors.

India has 213 GW module capacity, 32 GW cell capacity, but fully dependent on China imports for polysilicon.

Current Status

  • Downstream manufacturing (cells, modules, ingots) expanded rapidly.
  • Polysilicon remains the missing link in domestic solar supply chain; scheme size, structure, and participants not yet disclosed.
  • Separate from Solar PLI – Polysilicon support will be independent of this scheme; existing solar PLI boosted cells, modules, and ingots.
  • Expected addition – 100 GW cell capacity and 80 GW ingot/wafer capacity in coming years.

Renewable Tariffs

  • Solar Energy Corporation of India (SECI) Renewable Energy – Round the Clock (RE-RTC) bid discovered tariff at Rs. 5.25/unit; Tariff nearly matches nuclear power costs.
  • Provides 90% assured power availability; solar contributes 50% daytime supply.
  • Developers integrated solar, wind, and storage for reliable supply.

RE-RTC – It is a power supply model that delivers continuous, uninterrupted clean electricity 24 hours a day, 7 days a week.

  • Green Hydrogen and Emerging Fuels – Government creating markets for green hydrogen, ammonia, methanol; Pilots in fertiliser, refineries, shipping, transport, steel.

Regional Energy Trade

  • Cross‑border cooperation with Bhutan and Sri Lanka.
  • Focus on regional electricity market linking solar, wind, and hydropower.

Reference

Downtoearth | PLI

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