Assessing semiconductor fab investment; targeting diversification, exports: BEL

“We are already working with NHPC to manufacture solar equipment, such as solar cells, wafers, and others. We are looking at setting up a fab, with the government now providing 50 per cent of the project cost. BEL can chip in around Rs 3000 crores for the project,” Batra said.

Pune: The chairman and managing director of the defence utilityBharat Electronics Limited(BEL), DineshBatra, said on Friday that the company is assessing an investment in asemiconductorfabrication facility (fab) with a significant investment, in the picture of the Union government’s support for such facilities in recent months, adding that BEL is also looking at diversifying its business in non-defence portfolio, particularly in railways, e-mobility, among others.

“We are already working with NHPC to manufacture solar equipment, such as solar cells, wafers, and others. We are looking at setting up a fab, with the government now providing 50 per cent of the project cost. BEL can chip in around Rs 3000 crores for the project,” Batra said.

Batra was speaking at BEL’s Pashan facilities, where he inaugurated a lithium-ion cell research and development (R&D) and manufacturing plant, as well as a battery pack assembly facility. BEL has spent around Rs 30 crore on the lithium-ion facility, with the firm adding that the batteries and battery pack, on development and demand, will be used on both defence and civilian e-mobility applications, including all classes of EVs.

He also emphasised that with the widening of defence production, across weaponry, communications, and others, it is important for BEL to diversify its business.

“We were the monopolistic provider in certain defence equipment, such as radar technology. The government is now pushing defence production and indigenisation, and there is no special treatment for anybody. When other companies are also sharing the pie, we should enter other areas of business too. The defence indigenisation push, and the diversification, will be a net positive in terms of import substitution across verticals,” Batra added, in an interaction with the press.

Batra said that the diversification is occurring in the railways and metro railway applications, including communications-based train control (CBTC), SCADA, platform screen doors, as well as in electric mobility. He added that in the latter, BEL is working with oil marketing companies to set up fast and conventional chargers across an initial five highways, and is also willing to work with the industry regarding battery solutions in the future, based on demand, and can also scale up manufacturing or engage in technology transfers regarding the same.

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