An MoU has been signed between Vikram Solar and the Tamil Nadu government for a BESS manufacturing facility at Gangaikondan SIPCOT. The INR 15,037 crore (~$1.65 billion) investment is expected to create 2,670 jobs and expand clean energy manufacturing in the state.
SNAPSHOT
Company: Vikram Solar Limited
Facility Type: Battery Energy Storage Systems manufacturing
Location: Gangaikondan SIPCOT Industrial Park, Tirunelveli, Tamil Nadu,India
Investment: INR 15,037 crore (~$1.65 billion)
Employment: 2,670 jobs
Agreement: Memorandum of Understanding with the Tamil Nadu government
Project Status: Planned
In a massive push for India’s clean energy supply chain, Vikram Solar Limited has inked a INR 15,037 crore ($1.57 billion) Memorandum of Understanding with the Tamil Nadu government to establish a mega Battery Energy Storage Systems (BESS) manufacturing facility in Tirunelveli district. The proposed plant will be developed at the State Industries Promotion Corporation of Tamil Nadu Industrial Park in Gangaikondan.
The project involves an investment of INR 15,037 crore which is equivalent to approximately $1.57 billion and is expected to generate employment for 2,670 people. The agreement was signed on July 9, 2026, between Vikram Solar and Tamil Nadu’s Industries, Investment Promotion and Commerce Department.
The planned facility will mark Vikram Solar’s expansion into battery energy storage manufacturing. The project will complement the company’s existing solar photovoltaic manufacturing operations and broaden its participation across the clean energy equipment value chain.
Vikram Solar already operates solar module manufacturing facilities at Oragadam and Vallam in Tamil Nadu. It has also developed an integrated solar cell and module manufacturing campus at Gangaikondan. The company recently began producing modules at the Gangaikondan facility, which is planned to progressively include solar modules, cells, wafers and ingots.
Locating the BESS facility at the same industrial area could support integration between Vikram Solar’s solar manufacturing operations and its planned energy storage business. However, the announcement did not disclose the plant’s proposed annual manufacturing capacity, battery chemistry, construction schedule or expected commencement of commercial production.
The investment is expected to strengthen Tamil Nadu’s clean energy manufacturing ecosystem and create new employment opportunities in Tirunelveli. It also adds battery storage equipment to the state’s growing solar manufacturing base as electricity networks require additional storage capacity to support renewable energy integration.
The MoU represents an investment commitment and an initial step toward project development. Vikram Solar and the Tamil Nadu government are expected to work on land, approvals, infrastructure and implementation arrangements before construction begins.
Once developed, the facility could increase domestic BESS manufacturing capacity, reduce dependence on imported equipment and support demand from utility-scale, commercial and industrial, renewable energy and grid flexibility projects across India.