Moser Baer's solar energy unit defers Chennai plant

Moser Baer Photo Voltaic (MBPV), a subsidiary of Moser Baer India, the optical storage device maker, has deferred its plan to set up a manufacturing facility near Chennai. 

In 2008, the company had signed a memorandum of understanding to set up a Rs 2,000 crore facility to manufacture silicon-based photovoltaic film modules. According to sources, it has been deferred due to liquidity constraints. 

When asked, a company representative said choice of equipment partners and other negotiations are delaying the project, and declined to comment on the liquidity position and the schedule. “The going is tough for the solar sector because of over-supply, but the country is solar-friendly,” said a source. The project was expected to commence from October — the company has already been allotted 120 acres and it has sought a further 130 acres, for future expansion — but due to the constraints, the project has been deferred.