VAVASI inks pact with Rajasthan Government to set up Silicon Manufacturing Complex; to invest Rs. 45,000 crores

Jaipur, 28th February '09: The VAVASI Group today signed a MoU with the Government of Rajasthan to establish a Silicon Manufacturing Complex in the state. The project will aim to address the demand supply gap in energy requirement across the globe and also help in development of allied infrastructure compliant with international standards.

As of today there are only 7 countries in the world producing total of 3,700 MW per Annum of capacity, wherein after the setting up of this complex India alone would be producing 2,500 MW per Annum capacity. This would reposition India in the Photo- Voltaic sector and silicon industry map of the world.

The MOU was signed by Mr. C S Rajan, Principal Secretary, Industries Department Government of Rajasthan and Mr. Farid Ariffudin, Managing Director of Vavasi Telegence Pvt Ltd. at a brief ceremony chaired by Chief Minister of Rajasthan, Mr. Ashok Gehlot.

The Silicon Manufacturing Complex will be developed with an investment of about 7 Billion Euros (Rs. 45,000 crore) and will aim to provide an end to end solution to producing energy using photovoltaic solar cells and manufacturing semiconductor grade silicon and modules. The projected capacity of the plant would be developed in a phased manner and would include-

- 20,000 MT Poly-silicon growing facility,
- 2,500 MW Crystal based Photo Voltaic Module manufacturing facility,
- 240 MW Thin film Photo Voltaic manufacturing capacity,
- 1,000 MW thermal power plant and
- 3,000 Tons per annum capacity Float Glass Plant.

The project will be one of the largest silicon manufacturing complex in the world offering cutting edge technologies in the segment. Fraunhofer Institute of Germany which is a globally renowned non-profit making research organization are the technology provider for this Project. A comprehensive Detailed Feasibilty Report (DFR) has been prepared by them on the Project and the Detailed Project Report (DPR) is under finalization.

Many innovative technology dimensions have been included in the Project. The Project would have the lowest energy and water consumption ratio in the world, resulting into cost advantage that would put India on a fiscal advantage globally. The Project would consume about 700 MW of power and balance 300 MW of power from the 1000 MW capacity power plant being established by VAVASI would be made available for the public use in the state.

Speaking on the occasion, Mr Farid Ariffudin, Managing Director, VAVASI Telegence Pvt. Ltd. said, "It is indeed a proud moment for VAVASI to associate with the Government of Rajasthan. VAVASI aims to make energy sources sustainable in the future. The project aims at setting up a whole value chain that will supply semiconductor grade silicon which is crucial for the global semiconductor market. With this approach a high degree of independence will be achieved with regards to sustainable energy resources and placing India on global silicon map. He also very highly appreciated the pro-active approach and efforts of the Bureau of Investment Promotion (BIP) in bringing the Project to the state of Rajasthan".

The Silicon Manufacturing Unit is manpower intensive and is expected to create 16,500 direct and 64,000 indirect jobs. VAVASI has mobilized the top notch brains that are the pillars in the silicon industry, both from within and outside India.

VAVASI would also establish world class township within and around the Project complex to include schools, hospitals, recreational centre and such other facilities for its employees and the local population living around. The project is estimated to pump in Rs 3,200 crore in the state economy over a period of next 10years which is phenomenal for the development of Rajasthan.

"The project will give a kick start to our mission of putting the state on the global silicon map," Mr C. S. Rajan, Principal Secretary, Industries Department, Government of Rajasthan said. "The investment is in line with our plans to bring in more employment opportunities to the state and will play the role of a catalyst in using solar energy as an alternative source of power" he added.

The Government of Rajasthan shall facilitate development of the Project by offering a 'Single Window' service through Bureau of Investment Promotion (BIP) in obtaining permissions/ approvals from various Departments/ Agencies of the State Government and in conversion of land use, as per applicable Rules/ Regulations, as per the Master Plan for the Project apart from extending fiscal incentives to the developer.

The development of the project will commence once the necessary permissions are in place and the project will commence operations in a phased manner beginning 2010-11.

Source : Equity Bulls

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