According to persons acquainted with the situation, Agratas Energy Storage Solutions Pvt Ltd. is in discussions with many banks to borrow up to $500 million through green loans. 

With facilities in India and the United Kingdom, the fully owned subsidiary of Tata Sons Pvt Ltd creates battery cells. The company’s website states that its buildings are built to run on clean energy. 

Talking about a private affair, the people who wanted not to be named stated that Agratas will use the loan earnings for its manufacturing. Most likely, the tenor would be longer than five years. 

The government led by Indian Prime Minister Narendra Modi is working to increase capacity across several industries, such as semiconductors, solar energy, and pharmaceuticals. The US and other countries are supporting the initiative in the hopes that varied supply chains will lessen China’s economic hegemony.

Modi is the resident of Gujarat, a coastal state in India, which has seen a number of investments. Tata announced last year that it intended to build a 20 gigawatt-hour lithium-ion battery facility in the region.

When Bloomberg contacted a Tata Sons spokesperson, the company declined to comment. The agreement’s conditions could alter at any time. 

In addition, Union Minister for Electronics and Information Technology Ashwini Vaishnaw stated on Thursday that The Tata Group would be investing “very big” in the Gujarati fab manufacturing and that a cabinet note requesting clearances for the project will be tabled “very soon“. Vaishnaw stated that the Tatas’ anticipated investment is significant since it will cover a larger range of prospects, from fab to OSAT (Outsourced Semiconductor Assembly and Test), during her speech at the biennial Vibrant Gujarat Global Summit held here.

According to Vaishnaw, the factory that would be built at the Dhooera fab would produce semiconductor chips and would require a “very big investment”.

“A lot of solid progress has already been made on it. We are going to present it to the Cabinet very soon, and then building will start,” Vaishnaw informed reporters.

He also said that the initiative will need permission from the Union Cabinet.

The Union minister added that the Tata Group will collaborate with a technical partner to launch the initiative, but he would not disclose the partner’s identity or the specific amount of money needed for such a wager.