Kolkata-based solar module maker Vikram Solar is going ahead with its plan to set up a 3 gigawatt (GW) module facility in Colorado, US, despite the unfavourable regulations being mooted against clean energy companies by the Trump administration, chief financial officer Ranjan Jindal told Moneycontrol during a pre-IPO event on July 19.
Earlier in the year, the company's management was mulling to scrap the project after Trump's first set of executive orders came into force. However, with US courts beginning to overturn some of those actions, Vikram Solar is hopeful of executing the project.
Also read: Trump tax bill puts US clean energy industry under threat of relentless subsidy slashes
"We do have plans for expansion in the US, it is still on the cards, not scrapped," Jindal said.
However, the company is yet to start making investments for US expansion, potentially delaying its FY27 timeline as uncertainty lingers on the crucial Inflation Reduction Act (IRA) benefits which allow companies to claim 30–70 percent of the project costs as tax credits. "We are closely monitoring the India-US trade negotiations," he added.
Currently, the company has a sales office in North America and targets rooftop/ residential customers. Sales in the US accounted for 100 percent of the company’s exports in the six months ended September 2021, and 96.8 percent, 83.5 percent, and 66.65 percent in FY21, FY20, and FY19, respectively, according to its Draft Red Herring Prospectus (DRHP) filed in October last year.
‘Domestic market looks good’
While tensions persist before the trade deal, the company is temporarily shifting focus to domestic demand.
"The domestic market is evolving good for us. The focus will keep on changing. It's a very variable dynamic and you need to steer at your working strategy accordingly," Jindal said.
The comments come as a group of US solar panel manufacturers recently asked the Commerce Department to impose tariffs on imports from Indonesia, India and Laos, accusing companies there of dumping cheap goods in the market to undercut new American factories, Reuters reported.
"The authorities will investigate this but there should be no impact on Indian suppliers, since we are not selling at cheaper rates," Jindal said.
The company is slated to go public in the coming months, as it received a nod from market regulator Securities and Exchange Board of India (Sebi) for a Rs 1,500- crore issue.
The company plans to expand its manufacturing capacity to 15.5 GW of solar modules and 5 GW of solar cells by FY27, with new facilities being set up in Tamil Nadu.
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