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Three photovoltaic manufacturing facilities to be set up

ALTERNATIVE ENERGY: The Union Minister for IT & Communications, Mr A. Raja, flanked by the Minister for New and Renewable Energy, Mr Vilas Muttemwar (right), and the President, CEO and Founder, Signet Solar, Dr Rajeeva Lahri, at a press conference in the Capital on Thursday. — Ramesh Sharma

New Delhi June 7 California-headquartered Signet Solar, which designs, develops and manufactures thin film silicon solar photovoltaic modules, announced on Thursday that it would invest $2 billion to manufacture solar photovoltaic modules in India.

The company's plans to set-up three photovoltaic manufacturing facilities (or fabs as they are called in the semiconductor parlance) for production of thin film solar modules for clean renewable energy, comes just months after the Government announced a semiconductor policy entailing capital subsidy to the investors setting up fabs in India.

The subsidy is in the form of tax breaks and interest-free loans. The incentives are pegged at 20 per cent of the capital expenditure during the first 10 years, for units located in Special Economic Zones. If a unit is located outside SEZ, the incentive is 25 per cent, along with an exemption on countervailing duty on capital goods.

Availing Incentives

The incentives can be availed for the manufacture of all semiconductors displays, including Liquid Crystal Displays, Plasma displays, as well as other such panels, including solar cell and photovoltaic. The guidelines for the operations of the scheme are currently being framed and would be issued shortly.

Already Moser Baer has announced its plans to establish a thin film solar fab in Noida SEZ at an investment of $250 million, becoming the first company in the photovoltaic space to seek benefits under the policy.

Signet Solar said, the construction of its first manufacturing plant in India, likely to be located within an SEZ, would begin by early 2008. Each manufacturing facility would have an annual output of 300MW, and the company expects to employ 4,000-5,000 people across various units.

Silicon photovoltaic modules convert solar energy into electricity for applications such as solar farms, rural electrification, residential rooftop and building integrated photovoltaic applications. Thin film silicon technology enables over 40 per cent cost advantage over other mainstream solar technologies, including crystalline.

Signet Solar's investment in India would be spread over ten years and would produce over 1 GW of annual output for export and domestic consumption. The company, which is eyeing Europe, the US and Japan as potential markets for its output, has also commenced construction of its first global manufacturing facility in Germany.

"We will start with an investment of $100 million in India and scale it up. The project would be supported through Private Equity funding and debt, besides seeking benefits under the Government policy. At some point we will also look at public funding," Signet Solar President, CEO and Founder, Mr Rajeeva Lahri, said unveiling the company's blueprint for India in the presence of IT and Communications Minister, Mr A Raja.

Thin film modules are expected to play a vital role in peak power production and stand-alone applications by avoiding massive investments in power infrastructure.

More Stories on : Non-conventional Energy | Overseas Investments | Foreign Direct Investment

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