Essel Group today said it has entered into an agreement with China's energy firm J A Solar to launch a joint venture for manufacturing solar cell and modules in India.
"Essel Group has entered into a joint venture agreement with J A Solar, China's leading solar energy firm, to launch a solar cell and module manufacturing company in India," Essel Group said in a statement here.
The Memorandum of Understanding (MoU) for setting up the JV company with an approximately 50:50 partnership and equity arrangement was signed between Essel Infraproject Ltd (EIL), the flagship infrastructure arm of the Essel Group and JA Solar (JAS), it said.
Essel Group was in Shanghai as part of Prime Minister Narendra Modi's delegation to China to forge strategic partnerships for building integrated, inclusive, innovative and sustainable smart cities in India.
The JV company will set up a manufacturing facility in India with an estimated capital expenditure of US 150 million (Rs 950 crore) out of which USD 30-45 million (Rs 190 to Rs 285 crore) will be by means of equity funding.
It will focus on using the latest cutting edge Photo Voltaic (PV) technology to manufacture solar cells, panels and modules in India. The facility is expected to turn out 500 MW of power per annum.
This JV is expected to boost Essel's on-going projects for renewable energy. Through this venture Essel will bring a range of global renewable energy solutions to India for use in a wide array of residential, commercial and mass utility based applications.
Essel Infraprojects CEO Ashok Agarwal said: "This venture will encourage bilateral trade investments which can best complement in terms of mass production from their end and precision being our forte."
The Essel Group has taken big strides in realising the Modi government dream of setting up 100 smart cities in India. It plans to invest over USD 2 billion over next three years in transforming major cities.
