Why Tata Power Picked Odisha’s Gopalpur For An Ingot-to-Cell Line

The Tata Power Group, which is already engaged in the production of solar cells and solar modules, now appears to have finally chosen Odisha as the location for its integrated solar manufacturing unit. The proposed facility will manufacture ingots, wafers, and solar cells.  Odisha Cabinet, in a latest development has approved its investment plan in the state for solar manufacturing. 

This development comes months after another major domestic player, Waaree Energies, which had earlier planned a similar facility in Odisha, moved most of its project out of the state and shifted it to Gujarat and Maharashtra as part of an alleged “realignment exercise.” The move dealt a setback to the company’s proposed plans in Odisha.

Difference in Scale

However, there is a clear difference between the proposed investment plans of Waaree Energies and Tata Power, starting with scale. In a recent decision, the Odisha Cabinet approved Tata Power Renewable Energy Limited’s (TPREL) proposal to set up a 10 GW ingot-and-wafer manufacturing facility along with a 5 GW solar cell plant at Gopalpur in Odisha.

In comparison, Waaree Energies had planned a 6 GW integrated solar manufacturing facility covering ingots, wafers, and solar cells. Relatively, the scale of manufacturing proposed by the Tata Power subsidiary is significantly larger.

Different Locations

Tata Power has earmarked a Special Economic Zone (SEZ) in Gopalpur, located in Odisha’s Ganjam district. The port city lies adjacent to Gopalpur Port, a minor port, and is strategically positioned between two major ports—Paradeep Port in Odisha’s Jagatsinghpur district and Visakhapatnam Port in Andhra Pradesh.

This is the same location where companies such as Saatvik Solar, En-Icon, and others have planned their solar module and cell manufacturing facilities.

Waaree Energies, on the other hand, had earmarked Odisha’s Dhenkanal district for its plant, which is located around 150 km away from Paradeep Port. Interestingly, Inox Solar later also identified the same district for its proposed solar cell manufacturing plant.

Solar Investments In Odisha At A Glance: 

Source: Saur Energy Research. * A number of firms have planned the production in multiple phases.  ** In Ganjam, the majority of the investments are destined for Gopalpur SEZ.

Tata’s Advantage in Gopalpur

The SEZ in Gopalpur where Tata Power plans to set up the project already falls under the company’s purview and is known as the Tata Special Economic Zone. According to an official statement from the Odisha Cabinet, the company has estimated an investment of around Rs 10,000 crore for the project, which is expected to generate nearly 5,000 direct employment opportunities.

SEZ and Other Taxation Benefits

The project is expected to benefit from various tax incentives available to companies operating in SEZs, including concessions on customs duty and other levies. In addition, the Odisha government is offering further support in the form of exemptions on state GST, electricity duty exemptions, and other incentives to promote domestic manufacturing. Solar manufacturing has also been accorded the second-highest priority status by the state, backed by supportive and industry-friendly policies.

With Tata Power’s investment, the eastern coastal state has received a significant boost by attracting fresh investment into the solar manufacturing sector. This comes as a confidence-building development following the slow exit of Waaree Energies from Odisha, reinforcing the state’s position as an emerging hub for solar manufacturing.