Chinese solar equipment manufacturing firm LONGi plans India plant

Published On: 14, Dec 2017 | Source:

Moneycontrol News @moneycontrolcom

LONGi Green Energy Technology Company might become the first foreign entity to set up a solar equipment manufacturing facility in India

According to a Mint report, the company is yet to finalise the developments with the Indian Government on the same. “Our company are (is) still in further discussion about investment and capacity to be built in India as well as other details. It will be disclosed in future,” a company spokesperson said.

The proposal follows government norms that mandate companies to have a local manufacturing capability in order to bid for the 20 gigawatts (GW) tender. The report states this tender is the world’s largest solar power tender till date.

The other Chinese firms that have been looking at solar equipment manufacturing in India include; GCL-Poly Energy Holdings Limited and Trina Solar Limited.

The Chinese solar panel manufacturing industry, with production capacity of 70 GW per year, sees India and the US as major markets. Indian solar manufacturers account for only 10.6 percent of the market share, according to consulting firm Bridge to India.

The Indian government also looks to give out 100 GW of solar and wind contracts by March 2020, of which 20 GW are to be solar projects, as it looks to catalyze the production of domestic manufacturing of solar power equipment.

The Bhadla solar park auction in Rajasthan in May saw tariffs falling all-time lows of Rs 2.44 a unit. Such low tariff rates are also attributed to the influx of solar modules supplied, where prices plunged by as much as 30 percent, with Chinese imports adding to the glut.

India has stated a target of 175 gigawatts (GW) of renewable energy generation by 2022. Of this, 100 GW would be from solar power, 60 GW of the wind, 10 GW from biomass and 5 GW from hydropower.Recently, Haridwar-based Patanjali Ayurved was reported to be investing around Rs 100 crore in its Greater Noida facility to produce solar panels.