Kolkata based Vikram Solar has signed a Memorandum of Understanding with the Government of Tamil Nadu to set up a 3 GW of the solar manufacturing facility in the state.
The company announced that wafer, cell, and module manufacturing setup would come up over five years.
The announcement by Vikram Solar comes soon after Haryana-based developer Renew Power unveiled plans to start manufacturing solar cells and modules in India.
The developer will invest INR15 billion to INR20 billion to set up the new production facility. The plant will initially have 2 GW of annual manufacturing capacity. However, the Renew Power factory’s location is yet to be finalized, as the company is still in talks with some state authorities.
The announcements by Vikram Solar and Renew Power come just weeks after Prime Minister Narendra Modi’s call for Indian companies to become more self-dependent.
India currently imports close to 80% of solar cells and modules from China. While it has emerged as the third-largest solar market, installing large capacities in the country will require indigenous manufacturing to be boosted.
To strengthen domestic manufacturing, “the Government of India is committed to providing handholding and security to Indian manufacturing companies – providing long-term investment security policies. It plans to impose 20% basic customs duty on solar components to be able to provide a springboard to the domestic manufacturing sector in renewable energy,” said Anurag Thakur, India’s minister of State for Finance and Corporate Affairs, while speaking at an event about AatmaNirbhar Bharat-Renewable Energy Manufacturing organized by Confederation of Indian Industry (CII).