+
Govt launches anti dumping probe into solar cell and module imports
POWER & RENEWABLE ENERGY

Govt launches anti dumping probe into solar cell and module imports

The Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce, has launched an anti dumping probe on imports of solar cells from Thailand, China and Vietnam.

This could put 53.6 GW capacity of under construction projects at stake. Out of the total, 7 GW are due to be completed by the end of FY2021.

According to the industry estimates, back-of-the-envelope solar projects calculations in India states that $500 million is needed to construct per GW project. This project can result in a risk of $25 billion.

Another 24.1 GW of projects was tendered, but the bidding was pending as of Q1 FY2021.

The DGTR is investigating the case after a case was filed by a group of domestic firms in the country, the Indian Solar Manufacturers Association (ISMA). It filed the petition on behalf of Mundra Solar PV, Adani Green's solar manufacturing arm, and Jupiter Solar Power.

The solar manufacturing companies have complained that Chinese solar manufacturing companies such as Longi, Jinko, and Trina are selling products in India, lowering their cost price to dump their products and corner the market wholly. Later, due to the supply chain dependency, these companies can monopolise the whole market while having lesser competition.

At present, a safeguard duty of 14.5% is available on solar imports coming into the country, which will expire by the end of July. The Ministry of New and Renewable Energy (MNRE) also put up a Basic Customs Duty (BCD) of 40% on modules and 25% on cells, which will come into force from April 2022.

However, it is unclear whether DGTR will decide to impose anti-dumping duty or will just remain for eight months or to be added above BCD.

The developers are worried that ADD over BCD can force others to shut shops. The current manufacturing capacity of India is 15 GW, not sufficient to fulfil the domestic needs since much of it is using older and less efficient technology.

Image Source


Also read: Freight charges for solar imports may remain high for next six months

Also read: Customs duty on solar imports from April 2022

The Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce, has launched an anti dumping probe on imports of solar cells from Thailand, China and Vietnam. This could put 53.6 GW capacity of under construction projects at stake. Out of the total, 7 GW are due to be completed by the end of FY2021. According to the industry estimates, back-of-the-envelope solar projects calculations in India states that $500 million is needed to construct per GW project. This project can result in a risk of $25 billion. Another 24.1 GW of projects was tendered, but the bidding was pending as of Q1 FY2021. The DGTR is investigating the case after a case was filed by a group of domestic firms in the country, the Indian Solar Manufacturers Association (ISMA). It filed the petition on behalf of Mundra Solar PV, Adani Green's solar manufacturing arm, and Jupiter Solar Power. The solar manufacturing companies have complained that Chinese solar manufacturing companies such as Longi, Jinko, and Trina are selling products in India, lowering their cost price to dump their products and corner the market wholly. Later, due to the supply chain dependency, these companies can monopolise the whole market while having lesser competition. At present, a safeguard duty of 14.5% is available on solar imports coming into the country, which will expire by the end of July. The Ministry of New and Renewable Energy (MNRE) also put up a Basic Customs Duty (BCD) of 40% on modules and 25% on cells, which will come into force from April 2022. However, it is unclear whether DGTR will decide to impose anti-dumping duty or will just remain for eight months or to be added above BCD. The developers are worried that ADD over BCD can force others to shut shops. The current manufacturing capacity of India is 15 GW, not sufficient to fulfil the domestic needs since much of it is using older and less efficient technology. Image Source Also read: Freight charges for solar imports may remain high for next six months Also read: Customs duty on solar imports from April 2022

Next Story
Infrastructure Urban

Budget Proposal Aims to Boost Investments

The recent budget proposal has introduced measures designed to promote investments and generate job opportunities across various industries, as reported by the Economic Times. This initiative seeks to stimulate economic activity and strengthen the country's growth trajectory by encouraging both domestic and foreign investments. Key aspects of the proposal include targeted incentives for sectors poised for expansion, such as renewable energy, infrastructure, and technology. The government aims to create a more favorable investment climate by offering tax benefits, subsidies, and streamlined reg..

Next Story
Infrastructure Urban

Indian Financial System Resilient Amidst Challenges

The Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao has emphasized the robust nature of the Indian financial system despite global economic headwinds, according to Economic Times. Rao?s comments reflect confidence in the stability and resilience of India's financial sector amidst a backdrop of international economic uncertainties and financial volatility. Rao highlighted that India?s financial system is well-equipped to handle external shocks due to its solid regulatory framework and prudent risk management practices. The country?s banking sector has demonstrated resilience throug..

Next Story
Infrastructure Energy

SC Allows State Tax on Mines, Minerals

Opposition leaders have welcomed the Supreme Court's recent decision permitting states to levy taxes on mines and mineral-bearing lands, as reported. The ruling is seen as a significant victory for state governments seeking greater control and revenue from natural resource extraction within their jurisdictions. The Supreme Court?s decision empowers states to impose taxes on mining operations and mineral-rich lands, which could enhance their revenue streams and enable better management of local resources. This move is particularly important for states with substantial mineral resources, as it a..

Talk to us?