In a major setback for Telangana’s renewable energy sector, Premier Energies Ltd, a leading player in India’s solar cell manufacturing industry, has decided to shift its Rs 1,700 crore solar manufacturing project to Andhra Pradesh instead of Telangana.
The company, which was among the early entrants in India’s solar cell production market, had originally proposed to establish a 4 GW solar cell manufacturing facility alongside a 4 GW module production unit within Telangana. However, due to a combination of factors, including policy decisions, infrastructure, and business incentives, the company has opted to set up its large-scale renewable energy plant in Andhra Pradesh instead.
Key Reasons Behind the Shift
While official statements are yet to disclose the exact reasons behind the relocation, industry experts suggest that Andhra Pradesh may have offered more competitive incentives, favorable industrial policies, and better infrastructure support. The state has been actively attracting investments in the renewable energy sector, with a focus on creating a robust ecosystem for solar energy manufacturing and exports.
This move marks a significant economic loss for Telangana, as the project would have contributed to employment generation, industrial growth, and expansion of the state’s renewable energy footprint. It also signals a growing competition among states to attract large-scale investments in the green energy sector, which is set to play a crucial role in India’s transition toward sustainable power generation.
With the shift of this high-value solar manufacturing project, Telangana now faces the challenge of re-evaluating its industrial policies and investor outreach strategies to prevent further loss of key investments to competing states like Andhra Pradesh.
