Amid solar energy and manufacturing buzz, a Chinese firm LONGi Green Energy Technology Co is in talks with the Indian government and planning to set up a solar equipment manufacturing facility in India.
In an attempt to boost its domestic manufacturing, India is planning to launch an aggressive 20 GW Solar Tender which is also the world’s largest solar tender.
In its new draft energy policy, NITI Aayog has projected 597-710 GW green energy capacity by 2040. The country is expected to witness aggressive bids in the energy sector.
LONGi, the world’s largest mono-crystalline solar wafer maker now comes in response to the Indian government’s proposal, reported Mint.
The company has an edge over other solar equipment manufacturers as mono-crystalline silicon is more efficient and expensive as compared to the multi-crystalline silicon, widely used globally in setting up solar power projects. It also improves the average efficiency of a solar panel, resulting in a better capacity utilization factor (CUF) of a solar project.
The other Chinese firms who have been looking at solar equipment manufacturing in India include; GCL-Poly Energy Holdings Ltd and Trina Solar Ltd.
Indian manufacturers have long been troubled by Chinese companies in almost every industry. Now, they are facing a new challenge from China in the cleantech sector.
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Even major domestic companies such as Tata Power, Adani Group, Jupiter Solar and Bhel are facing trouble to stay in the business amidst high cuts offered by Chinese manufacturers on solar cells.
Due to economies of scale at its manufacturing units, as well as the fact that India does not manufacture polysilicon, the basic material for making solar modules, these Chinese panels are 10-20 per cent cheaper than domestically manufactured modules.
In a recent development, Yoga guru-cum-business tycoon Baba Ramdev-led Patanjali Ayurved is also planning to enter into manufacturing solar power equipment with an investment of Rs 100 crore.
According to the company, it is not going to get into the price war with the Chinese players and will manufacture solar panels in India without compromising the quality.