Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights
Vikram Solar Clears Rs 4,371 Crore Investment for 5 GWh Energy Storage Manufacturing Facility in Tamil Nadu
Dec 18, 2025
Vikram Solar has secured Board approval for a capital investment of approximately Rs 4,371 crore to establish a 5 GWh battery energy storage system (BESS) manufacturing facility in Tamil Nadu. The project will be executed through the company’s wholly owned subsidiary, VSL Powerhive, as part of its phased expansion into energy storage manufacturing.
According to a regulatory filing, the approved expenditure marks Phase 1 of the company’s broader BESS manufacturing strategy. VSL Powerhive’s long-term roadmap envisages the development of up to 30 GWh of capacity across battery cells, modules, packs, and complete energy storage systems, to be rolled out in stages.
As part of the initial phase, the company plans to commission a 5 GWh BESS manufacturing plant at Oragadam, Tamil Nadu, by FY27. In parallel, Vikram Solar is progressing with backward integration into battery cell production, with plans to set up a 7.5 GWh cell manufacturing facility targeted for full commissioning by FY29.
The company stated that a dedicated research and development laboratory will be a key element of the storage initiative, focusing on next-generation battery technologies and innovative solutions aimed at sustaining long-term competitiveness.
Funding for the proposed capital expenditure will be arranged through a mix of debt and equity, the company said. Earlier this month, Vikram Solar also announced the appointment of Arun Mittal as Chief Executive Officer of VSL Powerhive.
The energy storage investment builds on Vikram Solar’s recent manufacturing expansion in the solar segment. In November 2025, the company commissioned a 5 GW solar module manufacturing facility in Tamil Nadu, increasing its total module capacity to 9.5 GW. It is currently executing an additional 6 GW module expansion, which will take overall capacity to 15.5 GW.
Additionally, the company is developing 12 GW of solar cell manufacturing capacity, scheduled for commissioning in FY27, reinforcing its strategy of backward integration and its commitment to strengthening India’s domestic solar manufacturing ecosystem.