VGS: Adani, SunEdison to invest Rs 25,000 cr; solar park in Gujrat
Gandhinagar (Jan. 11, 2015): Adani Enterprises and US-based SunEdison will invest about Rs 25,000 crore to set up a solar park in Gujarat that will create 20,000 new jobs.
At the Vibrant Gujarat Summit, the Adani Group also signed another agreement with Australian energy major Woodside for sourcing of LNG as well as cooperation in oil and gas exploration and production.
Adani and SunEdison will establish a joint venture for building the largest vertically integrated solar photovoltaic manufacturing facility in the country, a statement issued by the Adani Group said.
The JV will build the solar facility with an investment of around USD 4 billion (around Rs 25,000 crore), Adani Group said.
"The facility will create enough solar panels to fuel substantial solar growth in India, furthering India's goals for clean, renewable energy independence.
"India has embarked on an ambitious program to become a world leader in power generation from renewable technologies, and sees solar as a key part in realising that goal," Adani Power CEO Vneet S Jaain said.
This facility will vertically integrate all aspects of solar panel production on site, including Polysilicon refining, ingots, wafers, cells and panels production with a broader ecosystem involving extended supply chain for raw materials and consumables.
The facility, to be set up Mundra in three years time, will "create ultra-low cost" solar panels.
"This facility will create ultra-low cost solar panels that will enable us to produce electricity so cost effectively it can compete head to head, unsubsidised and without incentives, with fossil fuels," SunEdison President and Chief Executive Officer Ahmad Chatila said in a statement.
"By pairing SunEdison's solar technology expertise with Adani's extensive experience in the creation of infrastructure, we will be able to transform the region into a solar production powerhouse, creating 4,500 direct jobs and over 15,000 indirect jobs in the process," he added.
As the facility is built, certain portions will be completed first to allow key production lines to come online before the entire facility is finished.
"Though a part of the JV will become operational within one-and-a-half years from now, the fully integrated plant will take 3-4 years to become operational," SunEdison President, Asia-Pacific, Pashupati Gopalan told PTI over phone, adding that "we will be generating revenue for the JV from both debt (60 per cent) and equity (40 per cent)."
During the first half of 2015, SunEdison and Adani will complete a comprehensive analysis of the joint venture opportunity and business plan. Pending successful outcome of the study, construction of the facility will begin shortly thereafter.