The Adani Group is in talks with Japan’s SoftBank and Foxconn, maker of Apple’s iPhone, to secure investment in a $3-billion (around Rs 19,590 crore) project to make solar cells and panels in the country, two sources with knowledge of the matter said.
Prime Minister Narendra Modi’s government expects clean energy to yield business worth $160 billion in India in the next five years, based on the country’s power generation targets.
Softbank, Foxconn and Bharti Enterprises have already pledged to invest about $20 billion in solar projects in India.
A new deal with Adani, one of the largest conglomerates in India, would boost Modi’s efforts to promote manufacturing and create sorely needed jobs.
One of the sources, who is involved in the negotiations, said that over the past few weeks, group founder Gautam Adani has had talks with SoftBank chairman Masayoshi Son and Foxconn head Terry Gou.
“(Adani) are talking to Softbank, they are talking to Foxconn. They may partner with both of them. Something will be finalised in the coming few months,” the source said.
Both sources said the deal was yet to be finalised. Under the current discussions, SoftBank and Foxconn, which have a string of planned and executed in India investments, could directly inject money into the project.
Foxconn Technology Group, SoftBank and Adani all declined to comment. One of the sources said the talks had gathered pace after Adani and US solar power company SunEdison two months ago ended a $4 billion agreement struck earlier this year, on a similar project.
“That deal could not mature,” said the India-based source. “They were charging too much on the technology fee.”
It was not immediately possible to reach SunEdison outside business hours.