(representative image) | Photo Credit: REUTERS/ANNEGRET HILSE

Gujarat-based solar module manufacturer Navitas Solar plans to invest around ₹1,500 crore to set up a 3.6 GW solar cell manufacturing facility and a pilot wafer and ingot production line in Ankleshwar, as the company looks to deepen backward integration and reduce dependence on imported components.

The proposed investment marks Navitas Solar’s entry into solar cell manufacturing and comes as India’s solar industry prepares for tighter localisation norms that are expected to gradually extend across the solar value chain, including upstream segments such as wafers. “The new solar cell and pilot wafer and ingot line will be located at our Ankleshwar campus and will involve an investment of about ₹1,500 crore,” Vineet Mittal, Director Finance & Strategy, Navitas Solar, told the businessline.

Of the total investment, around ₹1,400 crore will be deployed towards establishing the 3.6 GW solar cell manufacturing facility, while ₹100 crore will be invested in the pilot wafer and ingot line. The company currently operates manufacturing facilities with a combined solar module capacity of 3 GW in Gujarat. This includes a 0.5 GW unit in Surat that started operations more than 11 years ago and a 2.5 GW module manufacturing facility in Ankleshwar that was commissioned last year. The Ankleshwar facility currently operates at an annual utilisation level of 65-70%.

Eyes import substitution

The investment comes as India accelerates efforts to build a domestic solar manufacturing ecosystem and reduce reliance on imported components. Under the Approved List of Models and Manufacturers (ALMM) framework, developers undertaking government-backed solar projects are required to source equipment from approved domestic manufacturers. The Ministry of New and Renewable Energy operationalised ALMM List-II for solar photovoltaic cells from June 1, 2026, making the availability of domestically manufactured cells increasingly important for the sector.

Against this backdrop, Navitas Solar’s decision to enter cell manufacturing is aimed at capturing a larger share of the solar value chain while positioning itself for future localisation requirements. Mittal said the wafer and ingot pilot line is primarily aimed at developing technological expertise ahead of the next phase of domestic manufacturing requirements. “The pilot wafer and ingot line is essentially a learning curve for us. Manufacturing ingots is highly technical and complex. We want to build capabilities well in advance and be prepared for the proposed localisation requirements for upstream solar manufacturing,” he said.

The government has proposed extending the ALMM framework to solar wafers from June 2028, a move that is expected to further deepen domestic value addition and encourage investments in upstream manufacturing. India’s solar industry remains heavily dependent on imports, particularly from China, for upstream components such as wafers and cells. According to Mittal, Navitas Solar’s current import dependence stands at 75-80%. “Our import dependence is currently around 75-80%. Once the cell plant becomes operational, we expect that to come down to nearly 20%,” he said.

Tech partnerships

To support the expansion, Navitas Solar has entered into technology partnerships with international firms across the manufacturing value chain. For the wafer and ingot line, the company has signed an MoU with a Chinese technology partner that has more than two decades of manufacturing experience. For the solar cell facility, Navitas has tied up with a Chinese turnkey equipment supplier. In addition, the company has engaged a German consulting firm to assist with design engineering, project execution, workforce training and yield optimisation. “We have signed an MoU with one of the pioneers in China for the wafer and ingot line. For cell manufacturing, we have tied up with a turnkey supplier from China. We have also hired a consulting firm from Germany to help with design engineering, execution, training and yield optimisation,” Mittal said.

Navitas Solar plans to finance the project through a mix of debt, internal accruals and fresh equity capital. “We will be funding the debt portion with the help of PSU banks. We have our own internal accruals from the module business and have raised equity in the past. We will be going back to the market for a third equity round,” Mittal said. The company is targeting a debt-to-equity ratio of approximately 70:30 for the project. “Half of the equity portion will come from our own internal accruals,” he added. The company reported revenues of around ₹1,300 crore in FY26.

Navitas Solar has already acquired nearly 60 acres of land in Ankleshwar for the project and is planning to acquire an additional 20 acres to support future expansion. “We have acquired close to 60 acres and are planning to buy another 20 acres in Sisodiya in Ankleshwar,” Mittal said. Civil construction covering more than 10 lakh sq ft is currently underway, while technology partnerships, approvals and leadership appointments for the new vertical have already been put in place. 

Published on June 16, 2026