SoftBank, GCL tie up for $930 mn India JV for solar equipment

Japan's SoftBank Group and Chinese firm GCL Group Ltd have inked a pact to set up a joint venture in India with an investment of USD 930 million to produce and sell solar energy equipment. The MoU was inked by GCL Group Holdings Ltd and Softbank Investment Advisors (UK) Ltd, an arm Softbank Group on March 29, the GCL Group said in regulatory filing in China.'

According to the MoU, GCL Group and Softbank Investment agree to be directly or through their respective affiliates or subsidiaries in India, will establish a JV in which Softbank Investment (or its affiliates or related companies) is a joint venture company.

It said that the joint venture company expects a total investment of 930 million US dollars. The joint venture plans to have a production capacity of 4GW, which will be implemented in two phases.

The main business of the JV involves production and sales of PV ingots, wafers, batteries and components.

Under the MoU, the GCL Group will be responsible for assisting the joint venture company to reduce production costs and to launch products. Besides, it would provide relevant technology and process support.

The Softbank investment will be responsible for assisting the joint venture company to obtain project land and ownership approvals, and assist the JV in obtaining all that may be provided by the Central and State Governments of India like project subsidies or benefits.

In 2015, SoftBank has announced that the firm would invest up to USD 20 billion along with Foxconn Technology Co Ltd and Bharti Enterprises in solar energy in India.