Tata Power to invest ₹6,675 crore in 10 GW solar manufacturing facility in Andhra Pradesh

Tata Power Renewable Energy Ltd (TPREL) has secured clearance to establish a 10 GW greenfield ingot and wafer manufacturing facility in Nellore, Andhra Pradesh. With an investment of ₹6,675 crore, the project marks the largest commitment to upstream solar manufacturing in India to date.

The project was cleared on Tuesday, January 6, 2026, by the State Investment Promotion Board (SIPB), chaired by Chief Minister N. Chandrababu Naidu. Cabinet ratification is expected later this week. This landmark facility is the first manufacturing unit to be launched under the ₹49,000 crore Memorandum of Understanding (MoU) signed between Tata Power and the Andhra Pradesh government in March 2025.

The facility will be situated within the IFFCO Kisan Special Economic Zone (SEZ) in Nellore, spanning 200 acres. The state has earmarked 120 acres for the initial phase, with 80 acres reserved for future expansion. Industry insiders noted that Nellore was selected over competing sites in Odisha due to its superior infrastructure and proximity to the Krishnapatnam Port, which is critical for logistics.

Ingot and wafer production is the “missing link” in India’s solar value chain. These components are essential for solar cells and modules, as well as certain semiconductor applications. By localizing this 10 GW capacity, the project directly supports the Centre’s Atmanirbhar Bharat goals and reduces reliance on imports, particularly from China.

To ensure the facility remains carbon-neutral, TPREL will also set up a 200 MW captive green power plant. This “green-on-green” manufacturing approach was a key differentiator in the company's detailed project report. The project is expected to create 1,000 direct jobs, significantly boosting the local economy in the emerging Nellore solar cluster.

Welcoming the move, IT and Electronics Minister Nara Lokesh said the investment reflects deep confidence in the state’s “Integrated Clean Energy Policy.” He noted that the project would deepen the local manufacturing base and support India’s transition to a low-carbon economy.

Summary

Tata Power Renewable Energy Limited (TPREL) is investing ₹6,675 crore to establish India’s largest 10 GW solar ingot and wafer manufacturing facility in Nellore, Andhra Pradesh. Cleared by the State Investment Promotion Board on January 6, 2026, the project is a cornerstone of the company's broader ₹49,000 crore green investment pact with the state. The facility, powered by a 200 MW captive renewable plant, positions Andhra Pradesh as a primary hub for the upstream solar and semiconductor value chain.

Frequently Asked Questions (FAQs)

Q1: Why are ingots and wafers called the “missing link”? 

India currently relies on imports for nearly 82% of these components, with over 95% of the global wafer market dominated by Chinese suppliers.

Q2: Who else is manufacturing in Nellore? 

The region is becoming a “solar cluster” with companies like ReNew (6 GW plant), Premier Energies, Websol, and Voltsun also planning major projects there.

Q3: How does this fit into the broader state policy? 

The project is part of Andhra Pradesh's Integrated Clean Energy (ICE) Policy, which targets 160 GW of renewable energy development with a ₹10 lakh crore investment potential.