Page 49 - Policy Economic Report - April 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Domestic Solar Manufacturing Scales New Heights

In a strong push towards Atmanirbharta, India's solar module manufacturing capacity nearly doubled from
38 GW in March 2024 to 74 GW in March 2025, while solar PV cell manufacturing capacity tripled from 9
GW to 25 GW. Additionally, the country's first ingot-wafer manufacturing facility (2 GW) commenced
production in FY25. Under the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV
Modules, investments worth ?41,000 crore have been made, generating direct employment for
approximately 11,650 people.

PM Surya Ghar Muft Bijli Yojana Sees Widespread Impact

The PM Surya Ghar Muft Bijli Yojana witnessed impressive progress, benefiting over 11.01 lakh
households by March 31, 2025. Under the scheme, ?5,437.20 crore has been disbursed as Central
Financial Assistance to 6.98 lakh beneficiaries, significantly promoting the adoption of rooftop solar.

Green Hydrogen Sector Gains Momentum

India’s Green Hydrogen sector also saw significant developments. Incentives worth ?2,220 crore were
awarded for 1,500 MW per annum of electrolyser manufacturing, while an additional ?2,239 crore was
allocated for 4,50,000 tons-per-annum (TPA) of Green Hydrogen production. Under the National Green
Hydrogen Mission, seven pilot projects were funded with ?454 crore for decarbonizing the steel sector.
Additionally, five pilot projects in the transport sector, with ?208 crore in funding, will introduce 37
hydrogen-fueled vehicles and nine hydrogen refueling stations.

Record Progress Under PM-KUSUM Scheme

The PM KUSUM Scheme witnessed record progress. In Component B, 4.4 lakh pumps were installed in
FY25, a 4.2-fold increase over the previous year. In Component C, 2.6 lakh pumps were solarized, 25 times
more than in FY24. The total number of solar pumps installed/solarized under the scheme has now
exceeded 10 lakhs. Financial expenditure for PM-KUSUM surged to ?2,680 crore, a 268% increase from
the previous year.

The Indian Renewable Energy Development Agency (IREDA) continues to play a crucial role in financing
clean energy projects. In FY25, IREDA recorded a 27% increase in loan sanctions, reaching ?47,453 crore,
while loan disbursements rose by 20% to ?30,168 crore.

Union Minister of New and Renewable Energy, Shri Prahlad Joshi, said, "India may have already become
or will soon become the third-largest renewable energy capacity holder in the world. This milestone is a
testament to Prime Minister Modi’s vision for a sustainable and self-reliant energy future."

These remarkable achievements reaffirm India’s commitment to its clean energy transition and its
leadership in the global renewable energy sector.

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