India’s largest independent producer of renewable energy, Gurugram-based ReNew Power has finalized the location in Gujarat for its maiden solar cell and module manufacturing unit, reports Economic Times. The company will manufacture both solar cells and modules at the unit.
The unit will come up in Gujarat’s Dholera with an initial investment of Rs 1,200 crore. The total investment in the unit will eventually rise to Rs 2,000 crore as Sumant Sinha-led ReNew Power ramps up the scale. This comes as a big push for the government’s Make in India and Atmanirbhar Bhaarat policy push for the manufacturing sector.
ReNew’s move comes after the government dissuaded companies from importing Chinese solar equipment, 80% of which comes from there. The Ministry of New and Renewable Energy recently announced a hefty basic customs duty — 25% on cells and 40% on modules — which will be levied from April 2022.
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The Centre has also put in place a Production-linked Incentive (PLI) scheme worth Rs 4,500 crore for the manufacture of solar equipment in the country. ReNew will tap into this scheme as well, the people cited earlier said.
Sumant Sinha, earlier this year formally announced its public listing on Nasdaq through a special purpose acquisition company (SPAC) merger with RMG Acquisition Corp II at a valuation of $8 billion.
As of March, ReNew’s total capacity in India stands at 9,900 MW, of which 5,400 MW is operational and a further 4,500 MW is under construction.
