Tamil Nadu, which hosts Vikram Solar’s new PV gigafab, may have a four GW solar factory by Tata Power Solar as well.

Tata Power’s solar arm is nearing a deal with the Tamil Nadu government for its proposed four GW integrated solar photovoltaic cell manufacturing unit in the state. Tata Power solar fab will likely come up in Gangaikondan near Tirunelveli.

The investment by Tata would be around Rs 3,000 crore (USD 403 million) with an employment potential of 2,000 locals.

Tata Power Solar had placed a bid for four GW manufacturing capacity under the government’s production-linked incentive and has been put under the waiting list following the auction which saw Jindal India Solar, Shirdi Sai Electricals, and Reliance New Energy Solar emerge as beneficiaries through the allotment on bucket filling basis.

The waiting list will likely be cleared following the same bucket filling method, with the government approving the expansion of financial outlay under the PLI Scheme from Rs 4,500 crore (USD 604.25 million) to Rs 24,000 crore (USD 3,222.67 million).

Currently, Tata Power Solar has a solar cell and module manufacturing facility in Bengaluru, Karnataka. In April 2021, it announced the expansion of the existing fab with the addition of new lines capable of producing high-efficiency monocrystalline passivated emitter rear contact (PERC) modules. With this, Tata Power Solar reached aggregate capacity of 530 MW for cells and 580 MW modules.

Tata Power’s latest investment news follows Vikram Solar’s plans to have a 4.3 GW backward integrated solar module manufacturing facility in the state in the next five years.

Out of this, it has already launched operations for an annual module capacity of 1.3 GW at Indospace Industrial Park in Chennai. The three GW addition will be aimed at backward integration and will include cell and wafer capacity.