Yash Birla Group to invest Rs 5,400 crore in Solar PV business

Birla Surya Limited, a part of Yash Birla Group (YBG) to invest approximately Rs 5,400 crore over the next five years to build India’s first largest integrated facility for fabrication of multi crystalline silicon wafers and processing of solar photovoltaic cells. Commenting on group’s entry into solar industry, Yash Birla, Chairman, Yash Birla Group, said, “We have been associated with eco-friendly portable power generation for over thirty years. With group’s emphasis towards a clean and green future, we have forayed into the fast developing solar photovoltaic industry.”
 
In the first phase, the company to set up manufacturing facilities for 60 MWp of multi-crystalline Solar Photovoltaic Cells and fabrication of 125 MWp multi-crystalline Silicon Wafers using Solar Grade Silicon (SGS). The first phase will entail and investment of Rs. 1,493 crore, funded through a mix of equity and debt. The company has tied up for long-term debt to the extent of Rs. 970.50 crore. The project is entitled to a capital subsidy of 25 per cent under the special incentive package scheme of Dept of Information and Technology, GoI.
 
“We have already contributed Rs. 254 crore into the project till date. Out of a sum of Rs. 792 crore (including debt) that has been infused into the project towards advances to equipment / technology suppliers, land and site development”, Mr. Birla said. “We would commence commercial production of Phase I by December 2011”. He has also hinted about the group’s intention of providing end-to-end solutions in solar power generation.
 
The proposed project is located in Satara District in Maharashtra. The Company has already acquired land for phase 1 of the project and is in process of acquiring land for the future expansion simultaneously.
 
According to Mohan Datari, CEO, Birla Surya Limited (BSL), the Company has signed contracts with leading technology suppliers like Roth & Rau AG of Germany, GT Solar of USA, Herbert Arnold GmbH & Co. KG of Germany, RENA GmbH of Germany etc. It has also signed contracts with leading manufacturers of utility equipment. Other contractors are: Larsen and Toubro (civil construction), Sterling & Wilson (electrical accessories), Ionex (effluent treatment), MK Welenkar & associates (architectural design), UTC Fire & Security (fire and security), and Carrier Airconditioning (chillers).
 
“We have planned the implementation phase of the project to ensure revenue generation at the earliest. BSL plans to finally realize complete vertical integration from FS to SPVC and further onto generators. The expansion is sufficiently staggered to ensure complete technology absorption”, Mr. Datari said.

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