March 4 (Bloomberg) -- India plans to add solar-equipment manufacturing capacity at a new park in Andhra Pradesh state, saying demand from plants under construction will help the industry recover from a glut of panels.
Solar Energy Corp. of India, the state-run company spearheading the industry’s development, signed an agreement with Andhra Pradesh Industrial Infrastructure Corp. for a solar park in the state that will have 1,000 megawatts of power capacity, as well as factories to produce modules and cells, Rajendra Nimje, managing director of SECI, said in an interview.
The plans come as panel prices appear to be bottoming out after falling more than 60 percent in two years amid a global supply glut. Local manufacturers, such as Indosolar Ltd., Moser Baer India Ltd. and Websol Energy System Ltd., who idled about half of their 1,000 megawatts of production capacity, will get fresh orders as new projects are built, Nimje said.
The solar park will be located in Mahboobnagar district of the southern state. It will also have facilities to train workers for the solar industry, Nimje said.
Solar Energy Corp. and Andhra Pradesh Industrial will hold an auction to award the 1,000 megawatts of generation capacity to developers, he said.
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