Tata Power is actively engaging in discussions with the Odisha state government regarding a significant investment aimed at boosting India’s solar supply chain independence. The company proposes to set up a massive 10 GW manufacturing facility for ingots and wafers critical components for solar cell production with a projected investment of approximately Rs 10,000 crore.
This move represents a strategic step toward backward integration in Tata Power’s manufacturing process, strengthening its position in the rapidly expanding renewable energy sector.
The Strategic Importance of Backward Integration
Currently, Tata Power’s solar manufacturing capacity stands at 4.55 GW focused on producing solar cells and modules. The planned 10 GW ingots and wafers plant would bring the entire manufacturing process—from raw material to finished module—under one roof.
- Ingots and wafers are the foundational materials required for making solar cells, which are then assembled into solar panels. Establishing a domestic source for these materials is crucial for reducing reliance on imports, a key objective under the Government of India’s ‘Aatmanirbhar Bharat’ (Self-Reliant India) initiative.
- The output from this proposed plant is intended to cater to both Tata Power’s internal requirements and the burgeoning demand from the wider solar industry, serving both domestic and international markets.
Location and Future Outlook
Two potential locations are currently under consideration in Odisha: Gopalpur and Cuttack. Both sites offer the distinct advantage of proximity to port facilities, which would significantly streamline logistics for both raw material imports (if necessary) and the export of finished products.
Praveer Sinha, CEO of Tata Power, highlighted the rationale behind this ambitious venture, emphasizing that the integration will meet both the company’s own needs and the broader industry demand. He acknowledged that while the project is still in the early planning phases, the company is optimistic about the future supply landscape.
“Tata Power believes there will be enough supply of cells and modules, given the demand-supply scenario in the country,” Sinha stated, reflecting confidence in the sustained growth and viability of India’s solar manufacturing ecosystem.
This investment underscores Tata Power’s commitment to spearheading the transition to cleaner energy and solidifies Odisha’s role as a major hub for India’s green technology manufacturing.
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