Tata Power arm to invest Rs 6 500 cr to set up 10 GW ingot wafer facility

New Delhi, Apr 30 (PTI) Tata Power on Thursday said that its arm Tata Power Renewable Energy will invest Rs 6,500 crore in a photovoltaic ingot and wafer manufacturing facility of up to 10 GW capacity.
    The production of ingot and wafer will support the company's backward integration, the company said in an exchange filing.
    The Board of Directors of Tata Power Renewable Energy Limited (TPREL), a subsidiary of the company, approved the proposal to adopt a new line of business, photovoltaic (PV) ingot and wafer manufacturing. The proposed new line of business falls under upstream solar photovoltaic (PV) manufacturing, specifically PV Ingot and wafer manufacturing. This segment represents a critical part of the solar value chain, supplying key inputs for downstream cell and module manufacturing.
     The foray into ingot and wafer manufacturing supports backward integration, reduces dependence on imports (currently dominated by China), and positions the company to benefit from India’s policy-driven push towards domestic self-reliance in solar manufacturing, particularly in view of the forthcoming ALMM List III requirements.
    The proposed investment is expected not to exceed Rs 6,500 crore, based on the overall planned ingot-wafer manufacturing capacity of up to 10 GW in two phases of 5 GW each.
    In addition to revenue generation, the project offers strategic benefits including early mover advantage in a capacity constrained domestic market, enhanced supply security for downstream operations, improved margins through vertical integration, and strong financial returns with a projected payback period of approximately five years.
    The project also aligns with national manufacturing priorities and positions the company to leverage policy incentives and demand protection mechanisms.

(This story has not been edited by THE WEEK and is auto-generated from PTI)