Solarworld to Form JV with Rays Power for 2.4 GW Solar Cell Plant in Madhya Pradesh
Solarworld Energy Solutions has formed a 50:50 joint venture with Rays Power Infra to establish a 2.4 GW n-type TOPCon solar PV cell manufacturing facility in Madhya Pradesh, with commercial production targeted for June 2027.
September 08, 2026. By Mrinmoy Dey
Under the proposed arrangement, Solarworld and Rays Power will each hold a 50 percent stake in Rays Green, which will undertake the establishment, development, construction, commissioning and operation of the facility. The plant will manufacture n-type TOPCon G12R solar PV cells and is being developed on approximately 41.30 acres of land.
The total financial commitment under the SSA and JVA is up to INR 520 crore, comprising equity contributions of up to INR 200 crore and a loan of up to INR 320 crore from Solarworld to Rays Green. Both Solarworld and Rays Power will contribute up to INR 100 crore each towards the equity capital of the joint venture, the company stated in a regulatory filing.
Solarworld's initial subscription will amount to INR 26.82 crore for 12,600 equity shares issued at INR 21,287 per share, while its total equity commitment may reach INR 100 crore. The company has also agreed to extend a loan of up to INR 320 crore to Rays Green, which will be disbursed in one or more tranches based on the project's funding requirements. The definitive loan documentation is yet to be executed.
The proposed facility has an estimated project cost of INR 1,000 crore. According to Solarworld, the scale of the project is expected to provide economies of scale, lower per-unit manufacturing costs and improve manufacturing competitiveness. The site has relatively flat topography and established trunk infrastructure, which is expected to reduce land development and project execution requirements. Its location within a solar manufacturing cluster is also expected to provide access to skilled manpower, technical expertise and supporting infrastructure.
Rays Green has entered into a lease deed with the Madhya Pradesh Industrial Development Corporation for the project land and has obtained consent to establish from the Madhya Pradesh Pollution Control Board. Construction activities have already commenced at the site. The project is also eligible for electricity at a subsidised tariff of approximately INR 4.30 per unit under the applicable government scheme, which is expected to provide an operating cost advantage.
The joint venture marks a strategic shift in Solarworld's cell manufacturing plans. The company had originally proposed to use INR 420 crore from the proceeds of its IPO and Pre-IPO issue to part-finance a 1.2 GW TOPCon cell manufacturing facility at Pandhurana, Madhya Pradesh, through its subsidiary Kartik Solarworld. However, the amount remained unutilised as of June 30, 2026. Solarworld's Board has now approved a variation in the objects of the offer to deploy this unutilised amount towards its investment in Rays Green and the new 2.4 GW facility at Mohasa-Babai.
The proposed 2.4 GW facility is targeted to begin commercial production in June 2027. Building construction is currently ongoing and is scheduled for completion by January 2027, while plant and machinery procurement, installation and commissioning are planned between October 2026 and May 2027. Utilities are scheduled to be developed between November 2026 and May 2027. The overall project cost is estimated at INR 1,000 crore, with INR 420 crore proposed to be funded from the unutilised IPO and Pre-IPO proceeds.
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