Tata Power Rs 28,000 Cr Investment: India's Solar Wafer Push

Solar wafer manufacturing in India is gaining importance as the country seeks to strengthen domestic production and reduce reliance on imported solar components.

Tata Power Renewable Energy Limited (TPREL) plans to continue its Rs 28,000 crore investment program through FY2028.

Although the broader investment plan centers around renewable energy expansion, its manufacturing implications matter the most as India tries to build capabilities further up the supply chain.

Tata Power has already established an integrated solar cell and module manufacturing business and is pursuing a separate investment in solar ingot and wafer production.

These upstream components are essential for manufacturing photovoltaic cells, making them strategically important to India's domestic solar industry.

Tata Power’s 10 GW Ingot and Wafer Manufacturing Plan

Tata Power has approved an investment of approximately Rs 6,500 crore for a proposed 10 GW solar photovoltaic ingot and wafer manufacturing facility at Gopalpur, Odisha.

The project is planned in two phases of 5 GW each and is intended to strengthen the company's backward integration into solar wafer manufacturing.

The facility would add upstream capabilities to a business that already manufactures solar cells and modules. In the solar production chain:

• Ingot manufacturing: Silicon is processed into solid forms used to produce wafers.
• Wafer manufacturing: Ingots are sliced into thin silicon wafers, which are processed into solar cells.
• Cell and module manufacturing: Cells convert sunlight into electricity, while modules combine cells into usable panels.

The proposed facility therefore represents a move towards a more integrated manufacturing model rather than an expansion limited to finished solar panels.

Also Read: The Green Factory ROI: Calculating the True Cost of ZLD and Industrial Solar for Indian Manufacturers

India’s Domestic Solar Wafer Manufacturing Gap

India's policy direction is creating a stronger incentive to establish upstream production capacity. The Ministry of New and Renewable Energy introduced ALMM List-III for solar ingots and wafers, with the framework scheduled to take effect on June 1, 2028.

The policy extends domestic sourcing requirements further into the solar value chain, where India has historically depended heavily on imports.

According to the Ministry of New and Renewable Energy, the initial list will require at least three independent manufacturing units with a combined capacity of 15 GW before it can be issued.

For solar wafer manufacturing in India, this creates an opportunity for companies to build production capacity ahead of the implementation deadline.

However, meeting future demand will depend on timely project execution, competitive production costs and access to manufacturing technology.

Implications for India’s Solar Manufacturing Supply Chain

Tata Power’s upstream expansion could support the development of a broader domestic supplier ecosystem. Ingot and wafer production requires specialized equipment, reliable electricity supply, process-control systems and quality-testing capabilities.

Potential manufacturing opportunities include:

• Industrial equipment: Machinery and equipment necessary for silicon processing and wafer fabrication.
• Factory automation: controls, monitoring systems and material-handling for high-volume manufacturing.
• Supporting materials: raw materials and consumables required for wafer processing.

Solar wafer production is an energy-intensive and capital-heavy endeavor, and established overseas producers benefit from economies of scale and well-developed supply chains.

With the 2028 sourcing deadline drawing closer, advancement in upstream manufacturing will signal whether India can go beyond module assembly and towards components production.