Chinese solar solutions company JA Solar and Indian developer Essel Infraprojects have signed a Memorandum of Understanding for the creation of a joint venture to establish a solar cell manufacturing facility in India.
The project is estimated to require capital expenditure of $150 million, of which $30 million to $45 million is to be raised from capital market.
The facility is expected to turn out 500 MW of power per annum, India Infoline has reported.
The companies had agreed to cooperate on the venture at the India-China Business Forum held in Shanghai on May 16 during Indian Prime Minister Narendra Modi’s visit to China.
“Our MoU with Chinese partners will provide a fillip to the ‘Make in India’ movement and will help Essel realize the vision for developing Green Projects in India,” Ashok Agarwal, the CEO of Essel Infraprojects, said.
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The companies believe they complement each other with JA Solar lending its expertise in mass production and Essel pitching with its prowess in precision devices.
India and China signed 20 business agreements for $22 billion at the forum with special focus on cooperation in the solar industry.
Essel has been actively participating in the smart cities initiative of the incumbent government and has announced plans to invest more than $2billion over the next 3 years toward the achievement of the goal.
Earlier this month, JA Solar had formed a joint venture with Soventix Chile for the development of large scale solar photovoltaic power projects in Chile. The company is expected to bring the experience gained from its global operations to the Indian project.
Ajith Kumar S
editor@greentechlead.com