The Lanco Group will invest Rs. 30 billion to set up a solar photovoltaic manufacturing unit with an annual capacity of 250 MW for local sales and exports to Europe and USA, a company official said.
This project was originally supposed to come up in the state of Orissa where Lanco had identified the land for the same. This then ran into enviromental clearance issues and seems like the project has since been moved to the state of Chhattisgarh.
Further as Panchabuta understands, Lanco is in advanced discussions with GT Solar to set up the PV manufacturing chain. As readers of Panchabuta might be aware, Birla Surya selected GT Solar for India’s First Commercial-Scale Polysilicon Facility last year.
The plant, at Rajnandgaon district in Chhattisgarh, would be set up in two phases by Lanco Solar , a special purpose vehicle of Lanco Infratech. It aims to meet 15% of the local demand for solar energy equipment, the company’s Chairman L Madhusudha Rao said.
The project, being funded with a 75:25 debt-equity ratio, involves an initial investment of 1,370 crore in the first phase that is expected to be completed in 15 months. The manufacturing unit shall be fully commissioned by 2014.
The company has tied-up with Axis Bank and a consortium of banks for the funding of the first phase. The unit would contribute in revenue generation of about 1,500 crore, Rao said.
Lanco has no immediate plans to list the new business division, he said. “We are not looking to list it now but would make it an independent vertical in the next 2-3 years,” Rao said, adding that the company may be restructured in the next 12-15 months.
Lanco Solar plans to set up 500 MW solar plants over the next four years. The company had earlier won bids to set up solar thermal and solar photovoltaic plants in the country. On being asked on the current status of its various solar plants being set up, he said: “We are very confident on commissioning of plants before schedule.”