The ambitious project of the Kerala State Industries Development Corporation (KSIDC) to manufacture solar cell and modules in Kerala will be dropped
following the high cost for the end product when compared to other solar panels available in the domestic market.
KSIDC had signed an agreement with Korean company Ju Sung Engineering for the first phase of setting up a project for solar panels with an annual capacity of 100 MW. It was proposed to start the manufacturing unit at United Electrical Industries Limited, Kollam.
Centre for Management Development (CMD) was entrusted with carrying out a pre-feasibility study of the project and it was found that it was not feasible to manufacture with the technology available with the Korean company.
KSIDC is likely to go for another Expression of Interest (EOI) to make available latest technology for cheap production of solar panels.
United Electrical Industries chairman Shyam Sunder told Express that the pre-feasibility study pointed out that for the production of one watt of solar power, the cost will be `7 to `11 higher than what is currently available in the country. Solar cells and modules cannot be manufactured at such a high rate, which will not bring any profit to the company, he pointed out.
“When discussions started with the Korean company to come out with other technology for the production of solar equipments at a cheaper price, Kerala was rocked with the solar scam which is in discussions daily. The negotiations with the Koren company have stopped and it is not likely to be taken up further”, Shyam Sunder said.
It was made clear to the Korean company that the pact for the joint venture manufacturing will be signed only if the project is feasible. Now, other possibilities of new technology available around the globe have to be identified for the establishment of the manufacturing units. It was proposed that the Korean company, engaged in the development and production of solar cell manufacturing equipment and module manufacturing units, will invest Rs 500 crore in the project. It is proposed to manufacture solar cells and modules with a dimension of 6 inches and having 20 per cent efficiency, with an annual capacity of about 100 MW in the first phase.
According to Shyam Sunder, though the Korean company claimed that the technology of the panels ensure more than 21 per cent efficiency when compared to those available in market, which is 18 per cent, the price factor is not viable in Kerala. The efficiency of the panels have not been proved anywhere in the country, he added.
When contacted, the office of the Industries Minister said that they are yet to receive the pre-feasibility report to comment on the future course of action.