Shares of Sterling and Wilson Renewable Energy (NSE 2.7%) and Borosil Renewables (NSE 5.07%) rose to 6% in trading on Thursday after the Union Cabinet on Wednesday approved a production-linked incentive (PLI) scheme for the National High-Efficiency Solar Photovoltaic Initiative.

The PLI scheme for high-efficiency solar PV modules aims to achieve gigawatt (GW) scale manufacturing capacity for high-efficiency solar PV modules. Union Minister Anurag Thakur told a news conference that the decision aimed at creating an ecosystem for producing high-efficiency solar PV modules.

As part of the project, approximately 65,000 MW of fully and partially integrated solar PV module manufacturing capacity will be installed annually. The government has passed grants worth Rs 19,500 crore.

Sterling and Wilson rose 4% to a session high of Rs 332.95, and Borosil Renewables rose 6% to a session high of Rs 616.65 per share. Meanwhile, the benchmark index was lower, with the Nifty down 0.5% to 17,61.

Kranthi Bathini, the equity strategist at Wealth Mills Securities, said the PLI scheme could be a game-changer for the entire renewable energy sector.