Renewable energy firm ReNew Power Pvt. Ltd on Thursday said it is in discussions with various states to set up a Rs1,500-2,000 crore facility to make solar cells and modules. The factory will initially have a 2GW manufacturing capacity.

“ReNew will manufacture both solar cells and modules at the upcoming facility and endeavour to create a globally competitive manufacturing unit,” the company said in a release. Manufacturing will not only help it in backward integration but also provide it a better control over the supply chain for critical components, it added.

This comes weeks after Prime Minister Modi urged Indian industry to be self-reliant and cut import dependence. With over 80% of India’s demand for solar cells and modules imported from China, India plans to impose a basic customs duty on these items from August 1.

“ReNew Power is one of the biggest generators of renewable energy in India and the move to start manufacturing of solar modules and cells is a natural progression for us. I firmly believe that atmanirbharta in manufacturing will be key to the next phase of growth in the renewable sector,” Sumant Sinha, CMD, ReNew Power, said.