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GCL, Softbank to create $930 solar joint venture in India

EBR Staff Writer Published 03 April 2018

Golden Concord Group (GCL), a Chinese renewable energy conglomerate will form a $930m solar manufacturing joint venture in India with Japanese multinational conglomerate Softbank Group.

The two parties represented by their subsidiaries have signed a memorandum of understanding (MoU) to establish a manufacturing facility for photovoltaic (PV) ingots, wafers, batteries and solar modules in the south Indian state of Andhra Pradesh.

Production capacity of the facility is aimed to be 4GW, which is planned to be achieved in two phases with 2GW per phase.

The MoU was inked by GCL Group, a subsidiary of GCL and Softbank Investment Advisors (UK), a unit of the Softbank Group.

Softbank Investment will own 60% in the joint venture, while GCL Group will own the remaining 40%. There are plans to introduce a third-party partner in the joint venture, revealed GCL System Integration Technology (GCL-SI), a subsidiary of GCL.

GCL and Softbank Investment intend to establish the joint venture company directly or through their respective subsidiaries or affiliates. The board of directors of the joint venture will be created according to the equity structure.

Softbank Investment Advisors will finance the joint venture through its Softbank Vision Fund. 

As per the plans, GCL Group is expected to help the Indian solar joint venture to bring down production costs and introduce products to the solar market, in addition to offering technology and process support.

On the other hand, Softbank Investment will help the joint venture in getting project land and ownership approvals. It is also likely to help it in securing all subsidies and benefits provided by the Indian and Andhra Pradesh governments,  The Hindu Business Line reported.

In June 2015, SoftBank had signed an agreement with India-based Bharti Enterprises and Taiwan’s Foxconn Technology Group to set up a $20bn renewables joint venture (JV) in India.

Known as SBG Cleantech, the new joint venture was aimed at developing 20GW of solar and wind power projects in the country.