To tap the growing telecom infrastructure industry, MHS Energy - a subsidiary of clothing, infrastructure and energy company Tenstar Infratech Ltd on Thursday inked a deal with Germany-based b+w Electronic Systems to set up Rs 150 crore facility in India, a top official said.

As per the agreement, MHS Energy would set up solar- powered telecom towers for mobile companies, MHS Energy Managing Director Sajjan M Sharma said in Chennai.

"We are happy to have a Joint Venture with b+w Electronics Systems. As per the agreement they will provide technology and R&D support and we will provide the local expertise," he told reporters, after exchanging documents with top executives of b+w Electronic Systems.

Stating that their solar powered system would help telecom operators reduce usage of diesel and operational expenses by 70 per cent, he said the company was scouting for locations to set up its first manufacturing unit to produce these systems.

"We are looking for locations across the country. Preferably, it will be on the Tamil Nadu-Andhra Pradesh border. We require six acres (for the plant). It will have a capacity of 6,000 units a year, for which we will be investing Rs 150 crore," he said.

He said the company has set a target of retailing 6,000 units of solar powered systems in the first year.