India’s solar manufacturing sector appears to have received a boost, with solar cell manufacturer Indosolar signing a wafer supply agreement worth US$200 million with Korean company Osung.
Indosolar made an announcement to the Indian Stock Exchange and the Bombay Stock Exchange on Friday to the effect that the two parties have signed a contract which extends to 2018. Osung specialises in semiconductors, solar cells and related technologies.
Osung will initially supply Indosolar with 48 million wafers, worth around US$45 million. Further details of the deal have not been disclosed, although the Indian company said Osung’s deliveries will help it meet a significant portion of demand for the coming fiscal year. Based in Noida, Uttar Pradesh, Indosolar previously made a US$600 million deal with Chinese supplier GCL in 2010.
News of the deal follows closely behind US president Barack Obama’s visit to India, during which he announced investment of US$2 billion in Indian renewable energy projects through the US Trade and Development Agency. Among the topics addressed by the president and his counterpart in India Narendra Modi were how to foster the growth of the Indian solar industry. A possible fly in the ointment could come in the form of a WTO ruling on domestic content requirements, due to take place from tomorrow. The US had originally claimed in 2013 that India’s rules on domestic content broke global trade agreements.