One of China’s largest industrial groups East Hope has announced partnership with Indian conglomerate Adani to set up solar equipment manufacturing units in India’s western state of Gujarat.
Representatives of the two companies recently signed a memorandum of understanding at the Indian Consulate in Shanghai. As per the agreement, East Hope would invest a total of $300 million to develop various facilities include solar equipment manufacturing, chemicals, and aluminium.
The Adani Group has reportedly already set up the largest solar modules and cell manufacturing facility to manufacture solar modules and cells. According to a disclosure made to the Ministry of New & Renewable Energy earlier this year,
Mundra Solar, part of the the Adani Group, has commissioned 1,200 megawatts of solar cell and 1,200 megawatts of solar module production line. As on 31 December 2016, the production lines are ready but actual production is yet to begin.
Adani’s solar equipment manufacturing venture had first attracted SunEdison. The two companies had agreed to invest $4 billion in the production facilities which were to become the largest in India. However, the agreement became null following bankruptcy of SunEdison.
Adani was supposed to initiate production at the Mundra Solar facilities by March this year, however, it is unclear if the company has actually started manufacturing any cells or modules.
East Hope Group would possibly bring to the table what SunEdison lacked in terms of manufacturing and production expertise. The company already operates silicon smelters and would aid Adani in its manufacturing plans.
Adani plans to set up a manufacturing facility to produce 1000 MWp/yr of Silicon Ingots/ wafers, Silicon Solar Cells, Modules along with 3000 MWp support manufacturing facilities that includes EVA, Back-sheet, Glass, Junction box and Solar cell and string interconnect ribbon in 3 phases.
The third phase of of Adani’s manufacturing plan would include polysilicon production upto 10,000 tonnes.
Adani has extensive plans for expansion in the Indian solar power market. A group subsidiary already operates the largest solar power project in India and regularly participates in auctions for solar power projects across the country. Having a Chinese partner may also smoothen Adani’s entry into the Chinese market which is significantly larger than the Indian one.
