The company has already invested Rs 483 crore in building the manufacturing unit for making 750 MW of modules and 750 MW of cells.
Hyderabad-based Premier Energies plans to invest around Rs 1,200 crore in the next two years to expand its solar module and cell manufacturing capacity to 3,000 MW. The company has already invested Rs 483 crore in building the manufacturing unit for making 750 MW of modules and 750 MW of cells. The latest manufacturing unit is set to be inaugurated on July 29.
“We are already in talks with clean energy funds for investments in the upcoming expansion,” Chiranjeev Saluja, MD of Premier Energies, said, adding that “the upcoming planned capacities will be considered for bidding for incentives under the Centre’s Rs 4,500-crore production-linked incentive (PLI) scheme”.
The firm is enthused by the market visibility offered through various central government solar schemes with mandatory domestic content requirement. The solar export markets — especially in the US — also look lucrative with the push towards green energy by the Biden government. Currently, 10% of the company’s annual turnover of `850 crore comprise exports, and the share of exports is expected to rise going ahead.
To ramp up domestic manufacturing, the Union Cabinet has already approved the introduction of PLI scheme in ten key sectors, under which Rs 4,500 crore has been earmarked for Indian solar module manufacturers for a five-year period, wherein manufacturers will be incentivised according to the efficiency and indigenous component of the panels. Domestic developers have preferred to import cheaper equipment, mostly from China, to build solar plants in the country.
As on date, even the 3,000 MW of cell manufacturing units and the 10,000 MW of domestic solar module makers have to import most of their components such as wafers and ingots from outside. To boost domestic manufacturing, the Centre had imposed a 25% safeguard duty on solar imports from China and Malaysia in July 2018 for two years, which was extended till July, 2021 at a rate of 15%. From the beginning of FY23, solar module imports will attract a basic customs duty of 40%.