leading global solar energy equipment manufacturer Xi'an lONGi Silicon Materials Corp of China on Wednesday signed a memorandum of understanding (MoU) with Andhra Pradesh Government for setting up a solar cell and module production unit there with an investment of Rs8,000 crore. The first phase of investment worth 250 million US dollar (approximately Rs1,670 crore) has been cleared by the company.
lONGi Chairman Baoshen Zhong and Sri City Managing Director Ravindra Sannareddy signed the MoU in the presence of the Andhra Pradesh Chief Minister N. Chandrababu Naidu. “The Chinese solar equipment major proposes to manufacture 1,000 MW solar cells, 1000 MW solar modules, 500 MW solar power park. The first phase of investment is 250 million US dollar (approximately Rs1,670 crore) out of the proposed Rs8,000 crore,” according to a statement said issued on Wednesday.
Chandrababu Naidu recently visited China and raised his investment plan with the company. "Following my visit to China, lONGi has come out with a large investment plan in Andhra Pradesh and today being the auspicious day for me, my hope got fulfilled by signing this memorandum," the Chief Minister said.
On this occasion, Naidu assured the top brass of the Chinese company that they would get all approvals from the state government within 21 days as there is single desk for all sanctions. Addressing on the occasion he said, “For the first time very good investment is coming from China. Solar power is the best solution for sustainable economic growth.” He assured round-the-clock power supply and water availability for the manufacturing saying that the company will get assured quality power in the state.
The Chief Minister also informed that the Prime Minister will lay the foundation stone of new capital city Amaravati on October 22. About the aggregate technical and commercial losses, he said, the state will bring those down to single digit from existing 10.4 per cent and these would be reduced to international standards of 5-6 per cent in two- three years time. Expressing happiness on lONGi decision to invest in Sri City, Managing Director Ravindra Sannareddy of Sri City, however, said, “It is proud moment for us as the MoU is being signed on the eve of first anniversary of 'Make in India' campaign. The project is expected to employ more than 5,000 people.”
“lONGi's entry to Sri City assumes greater significance, as it would help boost solar power production capacity in the state. It is as a positive sign in the solar power industry and this will set an example for the future investors,” Sannareddy added.
