Odisha Clears ₹4,500 Cr CESC Green Investment for Solar, BESS Manufacturing

The Odisha government’s High-Level Clearance Authority  (HLCA) has approved plans for the manufacturing of solar cells and solar modules along with other value-chain and ancillary units across various locations in the state. The approval covers clean energy and energy storage projects worth around ₹4,500 crore for CESC’s renewable energy arm, CESC Green Power.

In a regulatory filing, CESC Green Power said it has received in-principle approval for the latest round of investments, which will be executed in three phases. 

HLCA Approval 

CESC Green Power received the High-Level Clearance Authority approval for setting up the following projects:

• 3 GW solar cell manufacturing facility 
• 3 GW of Solar modules,
• 5 GWh advanced chemistry battery cell pack, and advanced solar components
• 60 MW AC captive power plant in Dhenkanal district  

Fresh Investments

West Bengal-based CESC Green Power has announced a fresh round of investments, following its earlier indication of entering solar cell, module, and other value-chain and ancillary manufacturing across multiple locations in India.

In its previous announcement, CESC outlined plans to develop a 3+ GW solar cell and module facility, a battery manufacturing unit, a 60 MW renewable energy power plant, and several ancillary units, with an estimated total capital investment of up to ₹5,000 crore.

To develop this project, CESC said it will extend full financial support to CESC Green Power Ltd. The company aims to secure financial closure and ensure smooth implementation of the project. This support will include, but not be limited to, equity infusion, strategic assistance, and facilitation of institutional funding, it added.

Background

In the last two years, several solar manufacturing companies have invested in the state, either for solar modules and cells or other equipment. These included names like Waaree Energies, Saatvik Solar, Icon Solar, Inox Solar and others. However, the state got a jolt when Waaree Energies announced moving a large chunk of their investments outside Odisha. 

The capital subsidy, land bank, ports, electricity duty and GST waivers have attracted a lot of investments in the green sector in the past.  However, while the state has had clear success in attracting investments, the real test of its success will be apparent in the next two years as these projects move ahead to fruition.