International firms have started expressing interest in setting up solar cell and module production facilities in India following several measures by the government to promote the same.
According to media reports, US-based 1366 Technologies is looking to invest $300 million to set up a facility in India for solar wafer and cell production.
The company plans to set up the production facility under the Indian government’s production-linked incentive scheme and is looking for Indian companies to partner with.
India currently has only 3 gigawatts of solar cell and 15 gigawatts of module production capacity.
Despite the high demand for solar modules, this production capacity is believed to be highly under-utilized as developers prefer cheaper Chinese imports.
The most attractive policy initiative for cell and module manufacturers is the recently launched production-linked incentive scheme.
The government will offer $600 million to companies setting up new production facilities.