Reliance and BHEL to consider JV for solar fab units

Reliance Industries (RIL) and Bhel are in talks to form a joint venture (JV) for setting up solar fab units. RIL has plans to invest over Rs 30,000 crore in the chip manufacturing business. While RIL is scouting for partners for setting up two fab units, Bhel is looking for a strategic partner to venture into equipment manufacturing for solar power.

BHEL has received a communication from the Prime Minister’s Office (PMO) in this regard and may go in for a JV with Reliance Industries. The proposed JV is likely to venture into manufacturing of other small and medium equipment for solar power apart from the solar photo voltaic (SPV) cells. The JV would also look for small and mid-sized acquisitions in the international market for solar power.

The partners-in-waiting have not finalised the financial and technical details for the proposed JV and would firm up the plans in the next couple of months. The JV Company would be eligible for capital subsidies and tax concessions for the solar fab units, a cost of Rs 11,631 crore. The solar fab unit is proposed to be set up at Jamnagar in Gujarat, while the company is in talks with the state government of Maharashtra, Andhra Pradesh and Haryana to finalise the site for the semiconductor fab, according to details available with the government.