Amp Energy India on Friday announced a joint venture (JV) with Websol Energy Systems for manufacture and production of up to 1.2 gigawatts (GW) monocrystalline PERC solar cells and modules.

Both companies have entered into a term sheet for establishment of a JV for production of monocrystalline passivated emitter and rear contact (PERC) solar cells and modules in two phases of 600 megawatts (MW) each at Websol’s existing unit at Falta in West Bengal, Amp Energy India said in a statement.

The company’s entry into manufacturing will help it gain better control over the supply chain for critical components. It is proposed to set up the unit in a JV company in which Websol will hold 51 per cent and Amp Energy 49 per cent, it added.

The project is to be financed by a combination of debt and equity and will have an offtake agreement with Amp Energy India for up to 50 per cent of production. The rest of the produce will l be sold in the market. 

The term sheet is subject to both parties agreeing on certain commercial terms and DD, Definitive Agreements.

Amp Energy India MD & CEO, Pinaki Bhattacharyya, said the partnership with Websol Energy will go a long way in ramping up India’s solar module manufacturing capacity. There is strong demand for India manufactured solar cells and with favourable policies in place, the cost of manufacturing will also go down, as the industry scales and becomes more competitive. 

“We believe that our entry into manufacturing would not only help in backward integration, but also help us have better control over the supply chain of critical components. We have always supported the government’s Atmanirbhar Bharat initiative, by generating renewable energy in India and this natural progression into manufacturing is an extension of our support,” he added.

Amp Energy India is a renewable energy IPP with a total portfolio of more than 2GW spread across 15 states. It has a portfolio of C&I (commercial & Industrial) and utility customers. It provides green energy solutions to over 50 marquee customers across 10 sectors, including pharmaceuticals, automobiles, cement, steel, heavy engineering, FMCG and government bodies.