A manufacturing unit of solar cells and solar modules worth INR 520crores has been proposed to be set up at Nellore in Andhra Pradesh. The proposal has been put forth by the company Zynergy Solar Products and Services.
Being a subsidiary of Alectrona Energy of Chennai, Zynergy has been offered a number of benefits by AP’s Industries and Commerce Department. According to the sources, this project comprises of a solar module unit worth INR 110crores and a solar cell manufacturing unit of INR410crores. Zynergy has proposed a three phase project worth INR3790crores to AP and this is just one part of this project.
Recently the State Investment Promotion Board had held a meeting with CM Chandrababu Naidu having chaired it. In this meeting, a decision was taken to offer requisite concessions to the project to keep it in tandem with the Andhra Pradesh Electronic Policy 2014-2020. If the sources are to be believed this would lead to the company getting a complete reimbursement of transfer duty, stamp duty and registration fees that it might pay on the lease as well as sales deeds. It is also likely to enjoy a reimbursement of 100% of VAT and CST for about 10 years with the maximum amount being equal to the fixed capital investment made by the company in the project. Additionally the company will enjoy 10% of the total investment of 5crores as capital subsidy.
The AP government has gone further and decided to offer reimbursement for power costs too to this project. It will be offered for five years and will amount to INR1 per unit for modules and cells of 250MW to 500MW capacity, INR1.25 per unit for modules and cells with a capacity of 500MW to 1GW and INR1.5 per unit for modules and cells of a capacity more than 1GW. With the project, the AP government is aiming to seek the attention of wind energy equipment manufacturers as well as the makers of solar modules. The government has been putting in major efforts to enhance the renewable energy portfolio of the state to 9GW by 2019-2020 and this project forms a major part of this.