Kolkata-based Vikram Solar said its board has approved capital expenditure of about Rs 43.71 billion to be undertaken through its subsidiary VSL Powerhive Private Limited under Phase 1 of its Battery Energy Storage System (BESS) roadmap.

In line with plans to commission the project during the ongoing quarter, Powerhive’s long-term strategy envisages phased expansion of manufacturing capacity. The roadmap includes setting up 30 GWh of integrated battery cell, module/pack and BESS manufacturing facilities. As part of Phase 1, VSL Powerhive will commission a 5 GWh BESS manufacturing facility at Oragadam in Tamil Nadu by FY27.

The company is also advancing backward integration into battery cell manufacturing, with plans to establish 7.5 GWh of cell manufacturing capacity, targeted to be fully operational by FY29, subject to statutory and regulatory approvals. A dedicated research and development laboratory will form a core component of the initiative, focused on developing future-ready battery products and innovative solutions to sustain market leadership.

The proposed capital expenditure will be funded through a mix of debt and equity, as determined by the board from time to time, and subject to applicable approvals.

Vikram Solar has previously commissioned a 5 GW solar module manufacturing facility at Vallam in Tamil Nadu, taking its total installed manufacturing capacity to 9.5 GW. The 27,000 sq m Vallam facility is based on TOPCon technology and is designed for future upgrades to HJT, enabling the production of M10, G12 and G12R module formats.

Earlier this year, the company also announced plans to enter battery manufacturing alongside cell production, including a 1 GWh solid-state battery initiative. The Vallam plant further expands Vikram Solar’s footprint in Tamil Nadu, where it already operates a facility in Oragadam and has recently begun work at another site in Gangaikondan.