According to the agreement, AGEL (1) will build an 8 GW solar project and the commitment to see Adani Solar create the 2 GW of additional solar cell and module manufacturing capacity. This award is the largest of its type, and it will require an investment of around US $6 billion. Moreover, 900 million tons of Carbon dioxide (co2) will displace in a lifetime during the process.
AGEL will become the world’s largest renewables company by 2025, with 15 GW of capacity under operation, construction, or contract. Besides, this award will also bring a new revolution in the Indian industrial process. It will also help Adani Green Energy Limited take a step closer to their dream of gaining 25 GW of renewable power. 25 GW of power will help AGEL get an investment of $15 billion in the upcoming years.
Words by MR. Adani
MR. Gautam Adani (Chairman) said,
“At the United Nations Climate Change Conference, Mr. Narendra Modi said that India would lead the Climate Change revolution and fulfill most of its commitments before the deadline of 2030. We are happy to be selected by the Solar Energy Corporation of India for this landmark award. In today’s world, climate adaptation cannot be considered independent of economic development priorities, and both job creation and decarbonization must be simultaneous objectives. The fact that renewable power will transition into becoming the world’s cleanest and most economical fuel is a foregone conclusion, and the Adani Group intends to play a leading role in this journey.”
Advantages to India
This award will bring numerous benefits to India and the Indian economy. As expected, this process will create nearly 4,00,000 Lakh Job vacancy for the Youth of India. Moreover, this will help enhance India’s economy, and it will bring a new revolution that will help the Indian Government form new policies for the betterment of the Indian economy. Besides, this project will take the Indian industrial sector to a new level, and it will boost the Youth to invest their time and money in the Industrial sector of India.
Infrastructural development is another crucial point that will face a boost during this process. Moreover, this will be the motivation for the industrial sector to invest more in the Indian industries.
India’s Youth will automatically feel more attached to the industrial sector, and thus it will help bring more innovative and unique ideas for the betterment of industries. Indian Youth will participate more, and more outcomes are expected with the passage of the time.
The value of labor work will also increase as more requirements will help the low sector get the job. In short, one industrial revolution will bring a revolution in the economy and provide a livelihood to every Indian industry.
Dependency on China
In the past few years, the Indian Industry has taken some giant strides toward the development, and it is one of the most significant points towards the development. However, the Indian industry is still dependent on Imports’ outer countries, which is why the Indian sector isn’t getting the real benefit.
Even AGEL isn’t occupied with full resources, which can affect India’s largest solar industry’s dream. India’s export of material is dependent on China, and out of 85% of the share, China holds 80% of the share of the material is dependent on China. This material consist of Cells and module.
SECI also focuses on promoting domestic manufacturing and promoting local manufacturers.
Although India rapidly increases cell and module production, it wouldn’t be easy to beat China. India doesn’t produce silicon wafers, which are processed into cells. Even if India tries to raise the price of imported modules, Chinese manufacturers can retaliate. This action could lead to an increase in the cost of wafers and other components required for the production.
Positives for India
Despite all the issues and troubles, Vikram solar is the only player who has planned to make wafers in India. Vikram is India’s third-biggest module maker.
It is looking to set a new wafer, cell, and module plant in the Tamil Nadu. Adani Groups have already announced their entrance into wafer production, but they haven’t given clarity on it yet.
Indian’s are still doing their part of the duty, and in 2017, India’s Ministry of New and Renewable energy released a concept to enhance the production in India. They showed that India requires an investment of nearly Rs 11000 Crore, and maybe this is the main reason why Indian companies aren’t participating in the solar manufacturing process.
Over the years, China’s share in India’s cell and module imports have declined by 12%, and now the import has been shifted to other countries after the safeguard duty was imposed on Chinese products. India is currently importing from Taiwan, Malaysia, Singapore, and Vietnam.
India’s safeguard duty resulted in negative, and it reduced the import during March 2018 and March 2020.
Recently, Sunil Rathi stated that
“If they get the Indian government’s support for Five years, India can be the export hub.”
To Conclude, India’s glad to be presented with such an award, and the Adani group is trying their best to make things work for India. Although there are many obstacles, the Indian government and the Adani group are still working together to get the best out of business. China’s import is still a significant issue for India, and hopefully, the solution to this problem will be found soon. However, this solar plant will be a massive boost for the Indian economy, and it will surely provide an immense number of job opportunities across India.