In a statement made on Thursday, Tata Power informed that its subsidiary company Tata Power Renewable Energy would invest ₹6,500 crore in a solar cell ingot and wafer manufacturing plant with a capacity of 10 GW.
The Company said in an exchange filing that the ingot and wafer manufacturing will help in backward integration for the company.
The decision was made by the Board of Directors of Tata Power Renewable Energy Limited (TPREL), which is a subsidiary of the company, to go for the suggested plan, which includes the incorporation of a new business line, that is, the manufacture of PV ingots and wafers. The suggested business line belongs to upstream PV manufacturing, which means PV Ingot and wafer manufacturing.
This plant will be constructed in two phases, with an individual capacity of 5 GW for each, thus resulting in a total capacity of 10 GW. The intended capital will help consolidate the business’s production footprint in India.
As per Tata Power Renewable Energy Limited (TPREL), apart from meeting the company’s own demands, the new vertical would also cater to the domestic demand for solar power.
This move is designed with an intent to achieve backward integration and reduce dependence on foreign countries, especially China, which monopolizes the entire solar supply chain globally.
The company aims to increase supply chain security through domestic ingot and wafer production and gain uninterrupted availability of the necessary materials for further production.
This development follows from India’s policy initiatives for promoting local production in the sector, with List III of Approved List of Models and Manufacturers (ALMM) expected to be launched soon.
Through the entry into ingot and wafer production, the company positions itself in a favorable position to benefit from these measures and ensure demand security.
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