Which State Will Host Tata Power's 10 GW Ingot, Wafer Factory? MD Explains

After entering the solar cell and module manufacturing space, the company is now planning to deepen its backward integration. According to the latest information, it has agreed in principle to set up a 10 GW ingot and wafer manufacturing facility. These components are critical inputs for producing solar cells and, ultimately, solar modules.

Praveer Sinha, CEO and MD of Tata Power, shared additional details about the proposed 10 GW ingot and wafer lines during a recent investor call. Sinha said that because these manufacturing processes are highly capital- and technology-intensive, the company is still exploring potential sites.

Why State Location Matters

Given the high capital expenditure required for such facilities, the power major is seeking to maximise central government support under schemes such as the Production Linked Incentive (PLI), while also securing the strongest possible backing from state governments.

Sinha said the company has not yet finalised a state but is evaluating multiple options. “We are evaluating the 10-gigawatt plant for the manufacture of ingots and wafers. We are in discussion with various state governments as to what sort of state subsidy they will provide, as also the Government of India PLI, and we will be finalizing this in the next few months,” he said.

The company already operates a 4.3 GW cell manufacturing line at Tirunelveli in Tamil Nadu. It also expects a dedicated PLI scheme specifically for wafers and ingots. “The government is very keen that this type of plant comes up quickly. The overall requirement of the country is huge, and the current capacity is very limited. So, to encourage this, they will be coming up with a PLI to support such investments. This requires advanced technology as well asa  large investment for high capacity,” Sinha added.

Booming Solar Business

Tata Power is buoyed by the performance of its solar module and cell manufacturing businesses, which now provide the confidence to expand into areas few Indian solar companies currently venture into.

“Our solar cell and module manufacturing plant has done exceedingly well, has stabilised production, and the cost of production has reduced. We have optimised several costs, including input material costs, which is why our PAT has gone to Rs 240 crore, a 262% increase from the previous year. Our H1 PAT is Rs 340 crore, and you can expect this trend to continue in future quarters,” the company said.

The company added that its rooftop solar business has also seen strong earnings growth. “Another big highlight of the last quarter is our rooftop PAT, which has grown to Rs 123 crore — a 390% increase over the previous year — and on an H1 basis it stands at Rs 213 crore. For the first time, rooftop sales crossed Rs 1,000 crore in a quarter, and going forward, you will see many such new benchmarks being set in the rooftop business,” it said. The firm now aims to add 2.6 GW of renewable energy capacity by the end of this financial year.