Expect More Solar Manufacturers To Enter Odisha: Hemant Sharma

Expect More Solar Manufacturers To Enter Odisha: Hemant Sharma

How is the Odisha government supporting solar manufacturing investments in the state? 

Around 2022, we introduced our Industrial Policy Resolution, where we categorized solar modules, cells, wafers, and renewable energy as a “thrust sector”. This was a conscious decision. At that time, solar manufacturing was almost non-existent in eastern India. States like Bengal or Jharkhand had no real presence. So we decided to promote this sector aggressively. It was not just a mention in the policy—we followed it up with marketing and outreach. We identified key manufacturers, did market research, and approached them directly.

The demand for solar energy is now growing in central and eastern India, and even generation is shifting in that direction. That gave companies the confidence to invest. We also offered prime locations in central Odisha.

You’re referring to Dhenkanal and Gopalpur?

Yes, especially Gopalpur, which is a Special Economic Zone (SEZ). That makes it very attractive—companies can import duty-free and export tax-free. It’s also the only SEZ in the country with large land availability for this kind of manufacturing, just 2.5 km from the port. We also created a utility corridor connecting the SEZ directly to the port. It’s about two hours from Visakhapatnam and well-connected to Telangana and Karnataka.

In logistical terms, this reduces transportation distance by nearly 500 km compared to other locations. The costs of land, water, and power are also much lower. For example, industrial tariffs in Gujarat are ₹8/unit, Maharashtra ₹12/unit, but in Odisha it’s ₹4/unit.

Is there a power tariff exemption as well?

Yes, we offer 100% exemption from electricity duty and a further ₹2/unit subsidy for seven years. We allow open access to green power from anywhere in India with no transmission charges. That makes EBITDA margins 5–7% higher for solar manufacturers here. We’ve already been in touch with about 30 companies in this space. Some are operating, others are in discussions.

How many more companies are expected to come?

At least five more companies are in advanced discussions. We expect them to start operations by March 2026. Since we have a solid base now, we’re also bringing in ancillary industries—aluminum extrusion, glass, and packaging. We’ve compiled vendor lists to help co-locate their supply chains.

Will these ancillary units also be located close to the main facilities?

Yes. Most of them—glass, aluminum, and packaging units—are being encouraged to set up near the core manufacturing zones.

Solar manufacturing is labor-intensive. What support is offered in terms of jobs?

We provide training support—₹13,000 per employee—and training at ITI/polytechnic institutes is free. We’ve built two large worker housing complexes near Gopalpur SEZ, particularly in the HinKhar area.

Are those part of the SEZ?

They’re just adjacent. The Odisha government identified and earmarked those areas specifically to be close to the industrial belt, so that skilled labor is easily accessible.

How are you managing land availability for future projects?

We have two large industrial estates here, ideal for mid-level manufacturing—not for high-end sectors like auto components. In Angul, we have over 500 acres, and in Gopalpur around 1,000 acres, with only about 50% utilization so far.

We’ve seen some companies in Khordha too. How are smaller players being accommodated?

Yes, we support companies needing up to 20 acres as well. Locations are allocated based on their scale and requirements—whether Angul, Gopalpur, or Khordha.