The $3 billion Lanco Group is set to build the country's first solar photovoltaic (PV) equipment manufacturing facility at Rajnandgaon, Chhattisgarh, in three years' time. The plant, built at a cost of Rs 3,000 crore, would have production capacity for 250 MW modules.

At a function to lay the foundation stone for the plant, Mr L. Madhusudhan Rao, Chairman, Lanco Group said, “This is the first integrated manufacturing facility for solar PV. The first phase of the plant is expected to come up in 15-16 months, with production capacity of 50 MW modules.”

The company will spend Rs 1,370 crore on the first phase of construction for which it has achieved financial closure, Mr Rao said. The funding involves a 75:25 debt-equity ratio, with Axis Bank as major lender. The next phase will also be funded with a similar debt-equity ratio.

The company expects to earn $300 million once the plant achieves full production capacity. “We have tied up with some foreign players for the equipment for the plant. GT Solar is supplying the key equipment,” said Mr Rao.

The Rajnandgaon plant will be under Lanco Solar Pvt Ltd, a special purpose vehicle for Lanco's solar power business. Mr Rao said Lanco Solar will become an independent vertical in the long term. It will also be the holding company for Lanco's solar power plants. Lanco aims to set up 500 MW of solar power capacity in the next four years.

He added that the company plans to export 50-75 per cent of the plant's total produce and will cater to 15 per cent of India's solar power needs.

“Solar power in India has a promising future. We feel that the location of the plant is ideal as it is central,” said Mr Rao.

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