Tata Power plans ₹6,500 cr 10 GW ingot-wafer plant

The announcement and why it matters

Tata Power has said its arm, Tata Power Renewable Energy Ltd (TPREL), will invest up to ₹6,500 crore to enter photovoltaic (PV) ingot and wafer manufacturing. The plan is for a facility with capacity of up to 10 GW, to be executed in two phases of 5 GW each. The company disclosed the decision through an exchange filing.

Ingot and wafer manufacturing is an upstream segment in the solar value chain, supplying key inputs used later in solar cell and module manufacturing. Tata Power said the move supports backward integration, improves supply security for its downstream operations, and reduces reliance on imports that are currently dominated by China. The company also linked the decision to India’s policy push for domestic self-reliance in solar manufacturing, including the forthcoming ALMM List III requirements.

Board approval and new line of business at TPREL

Tata Power said the Board of Directors of TPREL, its subsidiary, approved the proposal to adopt a new line of business in PV ingot and wafer manufacturing. The company described this as a critical part of the solar value chain, because ingots and wafers feed into cell and module production.

The exchange filing also outlined the strategic logic. Tata Power said the project is intended to improve margins through vertical integration and provide stronger execution certainty for downstream operations by securing key inputs. It also said the project would be positioned to benefit from policy incentives and demand protection mechanisms.

Project scale, phases, and investment cap

According to Tata Power, the proposed investment is expected not to exceed ₹6,500 crore. The cap is based on the overall planned ingot-wafer manufacturing capacity of up to 10 GW in two phases of 5 GW each.

The company also cited a projected payback period of approximately five years. Along with revenue generation, Tata Power said the project offers early mover advantage in a capacity-constrained domestic market, enhanced supply security, and improved margins.

Nellore, Andhra Pradesh: greenfield plan and state approvals

Separate reporting from Andhra Pradesh indicated TPREL will set up a greenfield 10 GW ingot and wafer manufacturing facility at Nellore with an investment figure cited as ₹6,675 crore (also stated as about ₹66.75 billion). The project has been cleared by the State Investment Promotion Board (SIPB), chaired by Chief Minister Chandrababu Naidu, according to state government officials.

The facility is planned at the IFFCO Kisan Special Economic Zone. The Andhra Pradesh government has earmarked 200 acres for the project, including 120 acres for the initial phase and 80 acres for future expansion. Reporting also said the project comes up for Cabinet approval in the week referenced.

Land, logistics, and competing sites considered

As per reporting, Andhra Pradesh offered ready land availability and proximity to Krishnapatnam port, which helped it secure the project. The company had been actively considering two locations, Gopalpur and Cuttack, in Odisha, before finalising plans around Nellore.

Nellore has also been described as an emerging hub for solar manufacturing, with manufacturers such as Premier Energies, Websol and Voltsun planning projects there. Reporting also said ReNew is setting up a 6 GW ingot and wafer manufacturing plant in the state.

Jobs and a 200 MW captive green power plant

The project is expected to generate around 1,000 direct jobs, according to the detailed project report submitted to the state government. Reporting also noted significant indirect employment during construction and allied activities.

TPREL is also expected to establish a 200 MW captive green power plant to supply renewable energy to the facility. In one account, access to green energy was described as a key differentiator for the project.

Policy backdrop: ALMM List III and reducing import dependence

Tata Power said the foray into ingot and wafer manufacturing reduces dependence on imports, which it said are currently dominated by China. The company positioned the plan within India’s policy-driven push towards domestic self-reliance in solar manufacturing, particularly in view of the forthcoming ALMM List III requirements.

Another data point cited in the coverage highlighted why upstream capacity is being targeted. As of June 2025, India had 5.3 GW of wafer manufacturing capacity, compared with 29 GW cell and 120 GW module capacity, according to JMK Research.

How the move fits Tata Power’s solar manufacturing strategy

Coverage also linked the proposed plant to Tata Power’s existing manufacturing base. One report said the ingot and wafer plant is intended to support Tata Power’s existing 4.8 GW of integrated solar cell and module capacity, comprising 4.3 GW in Tirunelveli, Tamil Nadu, and 0.5 GW in Bengaluru.

Tata Power has also said it expects domestic demand for ingots and wafers to exceed 50 GW by 2030, driven by continued expansion in cell and module manufacturing. The company said the planned facility is intended to secure raw material supply for its own operations while also supplying wafers to other cell and module producers.

What officials and stakeholders have said

State-level messaging framed the project as a landmark manufacturing investment. Andhra Pradesh IT minister Nara Lokesh was quoted as saying the state is proud to host another Tata Group investment, and described it as a vote of confidence in policy stability, infrastructure readiness, and clean energy manufacturing.

Company-level disclosures focused on strategy rather than operational timelines. Reporting also noted that the company did not respond to queries in one instance, and that the Nellore facility was described as yet to be officially announced by the company in another.

Key facts at a glance

Conclusion

Tata Power’s decision to enter PV ingot and wafer manufacturing signals a push to deepen backward integration and align with India’s domestic solar manufacturing priorities. The plan targets up to 10 GW of capacity, with investment capped at ₹6,500 crore in the company’s filing, while state reporting around Nellore cites a ₹6,675 crore greenfield project with 200 acres earmarked at IFFCO Kisan SEZ.

Next milestones to watch include any formal company announcement on the site and implementation timeline, and state-level clearances referenced in the reporting, including Cabinet approval for the Nellore project.