Adani negotiating with Softbank and Foxconn to invest in $3bn solar project in India

19 August 2015 (Last Updated August 19th, 2015 18:30)

Adani Group is holding discussion with Japanese Softbank and Taiwan-based Foxconn to invest in a $3bn solar project, aimed to develop solar cells and panels in India.

Adani Group is holding discussion with Japanese Softbank and Taiwan-based Foxconn to invest in a $3bn solar project, aimed to develop solar cells and panels in India.

Initiatives by the Indian conglomerate are in-line with the country’s plan to generate clean energy business worth $160bn over the next five years, reports Reuters.

Softbank and Foxconn have already teamed-up with India-based Bharti Enterprises for a $20bn solar venture in India.

The proposed project is likely to support Indian Prime Minister Narendra Modi’s efforts to promote manufacturing and create employment opportunities in the country.

"The planned project is expected to develop a facility producing 3GW of solar cells and panels."

One of the sources involved in the negotiations was quoted by the news agency as saying: "[Adani] are talking to Softbank, they are talking to Foxconn.

"They may partner with both of them. Something will be finalised in the coming few months."

The deal, which is yet to be finalised, may see the two foreign companies investing money directly into the project.

The planned project is expected to develop a facility producing 3GW of solar cells and panels. The plant is likely to be built in the Indian state of Gujarat by 2020.

Adani has already started purchasing necessary equipment for developing the 1GW first phase of the facility, which is estimated to be complete by 2018.

Instead of opting for emission reductions as China has done, India is trying to push renewable business in the country to combat climate change.

As a part of its green energy targets, India aims to increase its solar capacity five-fold to 100GW by 2022. This would help the country cope with its rising energy demands, which are expected to double in the next five years from the current 140GW.