The US International Development Finance Corporation (DFC) has agreed to lend up to $425 million to India's TP Solar Limited, a Tata Power Renewable Energy Limited (TPREL) subsidiary, to support its GW-scale solar cell and module manufacturing capacity expansion in Tamil Nadu.
Part of one of the biggest private multinational conglomerates of India, TPREL plans to set up a 4.3 GW solar cell and module manufacturing plant in the Tirunelveli district.
It is scheduled to roll out the 1st module on site by the end of 2023 and the 1st cell in Q4/2024. The management said that the Tamil Nadu fab will be a smart fab equipped with industry 4.0 standards to produce high wattage products with 'industry leading efficiencies.'
"Pending a US congressional notification, this investment will support India's ambitious program to increase renewable energy manufacturing capability to support domestic solar capacity addition as part of its global green energy transition," stated Tata Power. "DFC's financial support of Tata Power will help secure the supply chain in the country's journey for leadership in clean energy space."
Initially announced in July 2022, the company signed a memorandum of understanding (MoU) with the State of Tamil Nadu for a greenfield manufacturing plant to host 4 GW solar cell and 4 GW module capacity using mono-PERC bifacial and n-type TOPCon panels (see Tata Power's 8 GW Solar Manufacturing Plan).
Tata Power says it currently operates a 500 MW solar cell and module production capacity each at Bengaluru in Karnataka.
The DFC is also supporting US-based First Solar with a $500 million loan for its 3.3 GW Tamil Nadu solar module fab (see $500 Million Loan For India Solar Manufacturing).
Both TP Solar and First Solar have secured Indian government's funding for their PV manufacturing projects under the latter's flagship Production Linked Incentive scheme tranche II (see India Allocates 39.6 GW PV Under PLI Tranche-II).