Premier Energies to add 7.4 GW cell, 6 GW module capacity annually at Rs 11,000-cr capex

New Delhi, Jan 12 (PTI) Renewable energy player Premier Energies is looking to more than double its annual cell and module manufacturing capacity to 10.6 gigawatt and 11.1 gigawatt, respectively, as part of its Rs 11,000-crore expansion plan, to meet domestic demand, a company official said.

The company is also looking to enter into the manufacturing of ingots and wafers to become one of the largest integrated renewable energy equipment manufacturers globally, Vinay Rustagi, Chief Business Officer (CBO) at Premier Energies, told PTI in an interaction.

He said the company at present manufactures 3.2-gigawatt (GW) cells and 5.1 GW modules annually from four units situated near Hyderabad in Telangana.

When asked if the company is keen to expand its manufacturing capabilities, he replied in affirmative.

"Yes, we have a substantial expansion plan of Rs 11,000 crore. We would be adding 7.4 GW of cell in Andhra Pradesh and 6 GW of module capacity in Telangana," Rustagi replied.

On the rationale behind the move, he said the decision to expand capacities has been taken as a major part of the company's existing cell capacity, which is approved under the government's ALMM framework.

The Approved List of Models and Manufacturers (ALMM) is an initiative of the Ministry of New and Renewable Energy (MNRE) that supports India's 'Make in India' vision by promoting local manufacturing, reducing import dependency, and generating new employment.

Sharing a breakup of the funding sources, Rustagi said the company had raised Rs 1,300 crore in its IPO last year. Another Rs 2,200 crore has been tied up through debt from state-owned IREDA (Indian Renewable Energy Development Agency), and the balance will be funded by internal accruals.

The CBO said, "It (expansion plan) is based on growing demand. The demand for our modules is growing in India and abroad. We have an order book of Rs 13,000 crore in the domestic market itself. We are booked for the next one year." Besides, the company has also been exporting cells to the US market in the past, he said.

In reply to questions related to backward integration, Rustagi said the company is also looking to enter into ingots and wafers to become one of the largest integrated renewable energy equipment manufacturers outside of China.

A solar panel is made of modules, which include cells. The cell manufacturing needs ingots, which requires wafer.

The investment related to ingots and wafers is designed to make the company's operations more resilient and is in line with the government's intent to make India self-sufficient in solar manufacturing, he said. PTI ABI HVA