Tata to Set Up India’s Largest Ingot and Wafer Factory, Aiming to Compete with China

Tata Power Renewable Energy (TPREL), a part of the Tata Group, is set to establish India’s largest ingot and wafer manufacturing plant in Nellore, Andhra Pradesh. The company is investing a massive ₹6,675 crore in this ambitious project. This factory will play a crucial role in meeting the demand for raw materials needed for semiconductor chips, solar cells, and modules.

The Andhra Pradesh government has allocated 200 acres of land in the IFFCO Kisan Special Economic Zone (SEZ) for this project, with 120 acres designated for the plant and the remaining 80 acres reserved for future expansion. According to Economic Times, the project is part of the central government’s policy to promote domestic production of solar equipment and reduce dependency on China for critical components.

1,000 Jobs to Be Created

The State Investment Promotion Board led by Chief Minister N. Chandrababu Naidu has approved the project, which will soon be presented for Cabinet approval. The project is expected to create 1,000 jobs. Furthermore, the Andhra Pradesh government will provide land for a 200 MW green energy plant to supply power to the factory, with green energy being a key element for the project’s success.

State IT Minister Nara Lokesh expressed pride, saying, “Andhra Pradesh is proud to host yet another significant achievement by Tata Group. This project underscores our commitment to stable policies, ready infrastructure, and clean energy manufacturing.”

Odisha Loses the Project

Initially, Tata Power Renewable Energy had considered establishing the plant in Gopalpur and Cuttack, Odisha. However, Andhra Pradesh managed to secure the project by offering immediate availability of land and proximity to the Krishnapatnam Port, which is crucial for the transportation of raw materials. Nellore is rapidly becoming a major center for solar manufacturing, with prominent companies like Premier Energies, Websol, and Voltson setting up projects in the region.

Memorandum of Understanding Signed in March

On 7 March 2025, TPREL signed an MoU with the Andhra Pradesh government to invest up to ₹49,000 crore in renewable energy projects. The ingot and wafer plant will be the first manufacturing project under this MoU. TPREL has already developed several solar and renewable energy projects across India, including a 300 MW plant in Dholera, Gujarat, a 400 MW unit in Pavagada, Karnataka, a 450 MW plant in Bikaner, Rajasthan, and a 431 MW DC utility plant in Neemuch, Madhya Pradesh.