A major agreement has been signed to give new impetus to India’s renewable energy sector. INOXGFL Group company Inox Solar has signed a contract worth about ₹7,000 crore with China’s leading solar energy company Longi Green Energy Technology. Under this agreement, Inox Solar will supply 5 gigawatt solar modules to Longi in the next three years. This deal is not only a major achievement for India’s solar industry, but also signals that the world is beginning to trust India’s growing manufacturing capacity and this also includes countries like China.
India is growing rapidly in the production of solar modules
According to Economic Times sources, China’s Longyi Green Energy will buy modules from Inox Solar for the Indian market. Under this deal, Longhi will help Inox with its advanced technical expertise and experience in global quality standards. Its objective is to ensure that Inox products meet international quality standards. This deal has happened at a time when India is rapidly increasing domestic production of solar modules, so that dependence on imports can be reduced.
Inox Solar expansion and new factories
Inox Solar has recently started its new solar module manufacturing plant in Bavla near Ahmedabad. In the first phase, its capacity has been kept at 1.2 GW, which will be increased to 3 GW in the next phase. The company is not stopping here, it is building another big solar cell and module plant in Dhenkanal, Odisha, whose total capacity will be 4.8 GW. With this facility, a big change can be seen in the direction of solar manufacturing in India.
IPO preparation and future plans
Inox Solar’s parent company Inox Clean Energy is also preparing to go public. The IPO of the company is likely to come in the fourth quarter of this financial year. Its objective is to further strengthen its presence in India’s rapidly growing clean energy manufacturing sector. The solar module production capacity in India currently stands at more than 100 GW, while the solar cell manufacturing capacity is 27 GW, which is expected to increase to 40 GW by the end of this year.
Local production increased due to government policies
Policies such as import duty on modules and cells, and domestic content requirement by the Government of India have played an important role in strengthening local manufacturing. These rules have inspired companies to increase production in India itself. This agreement between Inox and Longi is a big step in the same direction, which will enable India to become a strong center of the global supply chain in solar energy manufacturing.