ReNew Power zeroes in on location for manufacturing plant in Gujarat.

ReNew Power has finalised the location of its manufacturing unit in Gujarat, people aware of the development said.

One of India's largest renewable independent power producers, ReNew will invest up to Rs. 2,000 crore, the sources said.

The Gurugram-based company will manufacture both solar cells and modules at the unit.

ReNew Power did not respond to ET’s queries till press time Friday.

ET was the first to report about ReNew’s foray into the manufacturing space, on July 16 last year.

ReNew’s move comes after the government dissuaded companies from importing Chinese solar equipment, 80% of which comes from there.

The Ministry of New and Renewable Energy recently announced a hefty basic customs duty — 25% on cells and 40% on modules — which will be levied from April 2022.

The Centre has also put in place a Production-linked Incentive (PLI) scheme worth Rs .4,500 crore for the manufacture of solar equipment in the country.

ReNew will tap into this scheme as well, the people cited earlier said.

Renew, led by first-generation entrepreneur Sumant Sinha, earlier this year formally announced its public listing on Nasdaq through a special purpose acquisition company (SPAC) merger with RMG Acquisition Corp II at a valuation of $8 billion.

As of March, ReNew's total capacity in India stands at 9,900 MW, of which 5,400 MW is operational and a further 4,500 MW is under construction.

ET