BHEL to invest Rs 800 cr on its solar PV plant

Bangalore-based electronics division (EDN) of Bharat Heavy Electricals Ltd (BHEL) has proposed to set up a backward integrated project for its solar photovoltaic panel business. The company has planned to set up an integrated manufacturing facility for ingots to wafers, cells and panels using crystalline photovoltaic technology.

The company, which presently manufactures solar PV panels at its Bangalore plant, has estimated the investment for new facility in the region of Rs 800 crore, K C Ramamurthy, executive director, EDN, said.

"We are presently manufacturing 26 Mw solar photovoltaic panels at our Bangalore plant. We intend to embark on a backward integration for this plant and produce solar cells and further manufacture wafers, and ingots in-house in a phased manner," he said.

The company plans to expand the present capacity of its solar PV panel unit from 26 Mw to 480 Mw in two phases with 240 Mw in each phase. The proposed plant will be completely automated and first of its kind in the country. Till now, no other company manufactures their own solar wafers and cells including solar PV panels, Ramamurthy said.

The EDN has submitted a proposal to the company's board and the final decision is yet to be taken in this regard, he said.

The company's head office will decide on the location and exact investment required for the backward integration project, he said adding that the management was yet to finalise the location. "We have not decided on the location for this project and it requires about 100 acres land. Karnataka government has also offered us land near Bangalore. However, it is yet to be decided on the location," C V S N Murthy, general manager - SC&PV said.

Ramamurthy said apart from sourcing the components for its own captive use, the electronics division also plans to sell the solar panels in the domestic market.

It may be noted, the company is also in the process of setting up a joint venture with Bharat Electronics Limited for setting up a larger plant to produce solar cells and panels in the country.

"Our JV proposal with BEL is still on and that requires huge investment in the region of Rs 2,000 crore. That proposal is not yet closed and the approval from the boards of both BEL and BHEL is awaited. A business plan has been readied and is presently under discussion at both the companies," Ramamurthy said.

The market for solar PV panels is not stable at present and it is expected to stabilize in the next five years. BHEL plans to make use of the opportunity in this market as and when it matures, he added.