China’s CETC Renewable Energy Technology Company has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) to set up a solar photovoltaic (PV) cell manufacturing plant in the state. The manufacturing unit is expected to be set up in Sri City, which is in Andhra Pradesh’s Chittoor district.
According to the MoU, CETC is expected to invest $50 million (~₹3.2 billion). The facility could take up about 18 acres in Sri City.
Through this collaboration, APEDB says, approximately 1,500 job opportunities could be created in the state.
The government of Andhra Pradesh is likely to earn $8 million in tax revenue every year once the project is complete.
“CETC finds synergies in investing in Andhra Pradesh. As the state embarks on its next phase of industrialization, Andhra Pradesh is poised to catalyze investments in electronics manufacturing because of its robust infrastructure for connectivity, enabling policies, integration with global value chains, as well as a skilled and ready workforce,” the chief executive officer of APEDB, J. Krishna Kishore, said about signing the MoU.
The event was held in New Delhi on the sidelines of the CII Partnership Summit’s curtain-raiser, which is to be held in Vishakhapatnam in February. The Union Commerce and Industries Minister was also present at the event.
CETC Renewable Energy Technology Company is a subsidiary of China Electronics Technology Group Corporation (CETC), headquartered in Beijing. The CETC is a state-owned enterprise in China and a Global Fortune 500 company.
The APEDB was set up to accelerate the inclusive of economic growth of Andhra Pradesh. The board acts as a catalyst to facilitate economic growth, an investment climate, reforms, and competitiveness in the state.
Typically, MOUs have low chance of turning into reality, but the CETC deal is the second such announcement by a Chinese company in the recent past in Andhra Pradesh. Longi Green, a Chinese solar equipment and component manufacturer also announced plans to set up cell and module manufacturing units of 500 MW (each) in the state of Andhra Pradesh.
“With the pending anti-dumping case and recent preliminary finding by the Directorate General of Safeguards Customs and Central Excise recommending a 70 percent safeguard duty on solar cells imported from China, Chinese manufacturers are rethinking their approach in India. Chinese companies may be hedging in anticipation of a potential tariff imposition and announcing plans to setup manufacturing units in India,” said Raj Prabhu, CEO of Mercom Capital Group.
Image credit: @AP_EDB
Ankita is an editor at MercomIndia.com where she writes and edits clean energy news stories and features. With years of experience in the news business, Ankita has a nose for news and an eye for detail. Prior to Mercom, Ankita was associated with The Times of India as a copy editor for the organization’s digital news desk. She holds a Bachelor’s degree in Psychology from Delhi University and a Postgraduate Diploma in journalism. More articles from Ankita Rajeshwari.