NEW DELHI, October 3 — The Union Cabinet, chaired by the Prime Minister, on Saturday approved a dedicated financial outlay of ₹10,900 crore to scale domestic manufacturing of rooftop solar balance-of-system (BoS) hardware, high-efficiency micro-inverters, and smart bi-directional net-meters under the Make in India initiative.
According to the Ministry of New and Renewable Energy (MNRE), the capital incentive package is designed to support the supply chains powering the PM Surya Ghar: Muft Bijli Yojana. The scheme provides graded performance-linked subsidies ranging between 4 to 6 percent on incremental domestic sales over five fiscal years. To qualify for state disbursals, participating manufacturers must verify a minimum domestic Local Value Addition (LVA) of 50 percent, verified through strict testing standards administered by the Bureau of Indian Standards (BIS).
Cabinet ministers emphasized that the policy will insulate India's residential decarbonization targets from external component import bottlenecks, targeting ₹45,000 crore in fresh industrial greenfield capital expenditure and generating 150,000 high-skilled manufacturing and assembly jobs.
The policy architecture of Production-Linked Incentives (PLI) in renewable manufacturing, the Approved List of Models and Manufacturers (ALMM) regulatory mechanism, the statutory role of the Bureau of Indian Standards (BIS Act 2016), and supply-chain de-risking in clean technologies are essential topics across UPSC Civil Services (GS-III: Industrial Policy & Renewable Energy) and State PSC examinations.