---
title: " govt to back polysilicon with new subsidy scheme: official"
url: https://projectchintan.com/article/govt-to-back-polysilicon-with-new-subsidy-scheme-official-gjhb7
publisher: Project Chintan
author: Project Chintan Newsroom
section: Politics
published: 2026-08-21T17:03:02.611Z
modified: 2026-08-21T18:30:05.276Z
language: en-IN
---

#  govt to back polysilicon with new subsidy scheme: official

India plans a separate subsidy scheme to boost polysilicon manufacturing to 30 GW by 2030, citing high per-GW investment and limited capacity under the existing PLI. MNRE Secretary Santosh Sarangi indicated the need for government support to attract manufacturers.

## Key takeaways

- India intends to add at least 30 GW of polysilicon manufacturing capacity by 2030.
- A separate subsidy scheme is being developed because the current PLI is expected to yield limited polysilicon capacity.
- The estimated investment required per GW of polysilicon capacity is about ₹850 crore.

## What Happened

The Indian government is working on an additional subsidy scheme to support domestic polysilicon manufacturing, aiming to add at least 30 gigawatts of capacity by 2030. Officials say a polysilicon plant paired with metallurgical-grade silicon requires about ₹850 crore per gigawatt of capacity, prompting plans for a new funding mechanism beyond the existing Production Linked Incentive scheme. MNRE Secretary Santosh Kumar Sarangi stated that the current PLI capacity for polysilicon would be limited, necessitating a separate scheme to help manufacturers build facilities.

Sarangi emphasized that the move is intended to strengthen energy security and manufacturing resilience, with a target of 30 GW of polysilicon capacity by 2030. He also touched on energy storage needs and related technologies, noting potential progress in sodium-ion and vanadium flow batteries, though those topics relate to broader energy strategies rather than the subsidy itself.

## Why It Matters

The proposed subsidy scheme is framed as a response to the gap between policy incentives and the scale required for domestic polysilicon production. If realized, the policy could influence domestic solar supply chains, reduce reliance on imports for polysilicon-based components, and contribute to meeting the government’s capacity targets for solar energy by 2030.

The discussion occurs amid broader energy security considerations and ongoing work in energy storage and related technologies, which could shape future procurement and investment decisions in the solar sector.

## Background

Sources describe a prior PLI scheme covering polysilicon, wafers, cells, and modules, which analysts say would yield only limited capacity. The government’s approach is to design a separate support mechanism focused specifically on polysilicon manufacturing, given the large upfront investments involved.

## Key Facts

- Target capacity: at least 30 gigawatts of polysilicon manufacturing by 2030.
- Investment benchmark: about ₹850 crore per gigawatt of capacity for a polysilicon plant with metallurgical-grade silicon.
- Policy shift: moving from a polysilicon component within the existing PLI to a separate subsidy scheme to spur larger-scale production.
- Official source: Santosh Kumar Sarangi, Secretary at the Union Ministry of New and Renewable Energy.

## What Happens Next

Officials indicate that details of the new subsidy scheme, including the exact subsidy amount and eligibility criteria, are still being finalized. Stakeholders in the solar supply chain will monitor for formal announcements outlining implementation timelines, eligibility, and any transitional arrangements with the existing PLI framework.

---
Canonical: https://projectchintan.com/article/govt-to-back-polysilicon-with-new-subsidy-scheme-official-gjhb7
Reported from: Multiple Sources