Rays Green Energy Manufacturing, a subsidiary of Rays Power Infra, has announced a solar module and cell gigafactory in Madhya Pradesh.

The facility will house a 1.5 GW solar cell plant and a 3 GW solar module assembly line to support domestic industry.

The planned investment for the plant is ₹14 billion (~$168.07 million), and the factory will utilize tunnel oxide passivated contact (TOPCon) technology.

The company has received a letter of intent from the Madhya Pradesh government for the allotment of 38 acres of land at the manufacturing zone for power and renewable energy equipment at the Mohasa Babai Industrial Area, Narmadapuram district in Madhya Pradesh.

The Madhya Pradesh government has allotted 442.04 acres of land in the Mohasa-Babai region for companies to set up renewable energy manufacturing facilities.

The government has set up the manufacturing zone to provide a hassle-free allotment of land and clearances, with state-of-the-art common infrastructure facilities and common testing facilities to bring down the manufacturing cost significantly and make the domestic industry competitive.

In April 2023, the Madhya Pradesh government had invited expressions of interest for allotting land in the manufacturing zone. Some of the incentives extended to companies setting up facilities in the zone included capital expenditure subsidy of up to 40%, 100% reimbursement of the state goods and services tax and stamp duty on land and registration charges, 100% electricity duty exemption for up to five years,

The manufacturing plant by Rays Power aims to create about 1,200 direct and indirect employment opportunities, contribute towards skill development, and promote economic growth in Madhya Pradesh.

The government’s push for the domestic manufacture of solar cells and modules has resulted in several facilities being set up across the country.

In the first half of 2024, India added 11.3 GW of solar modules and 2 GW of solar cell capacity, according to Mercom’s State of Solar PV Manufacturing in India report. Module manufacturing capacity is projected to surpass 172 GW, and cell capacity is expected to reach over 80 GW by 2026.