India avoids imposing anti-dumping duty on solar panel imports

Bhushan Palo | @TheDollarBiz The Indian government has decided not to impose anti-dumping duty (ADD) on solar panel imports from countries such as USA and China, and has instead turned its focus to help domestic manufacturers become competitive. Solar energy production in India surged around 56% Y-o-Y in 2013-14 to 2,631 MW, but domestic manufacturers, represented by Indian Solar Manufacturers Association (ISMA), have complained that subsidized imports of solar panels are hurting their interests. Last month, the Director General of Antidumping & Allied Duties (DGAAD) had recommended the imposition of anti-dumping duty between $0.11 per watt to $0.81 per watt on the imports from China, Chinese Taipei, Malaysia and USA to offset dumping and material injury suffered by the domestic industry.

Source - Ministry of New and Renewable Energy

However, the government resisted from the move due to concerns raised by the Ministry of New & Renewable Energy and the Ministry of Road Transport & Highways, which are both relying on solar power to build infrastructure. There were also concerns that higher costs will jeopardise the ambitious Jawaharlal Nehru National Solar Mission (JNNSM) mission. It is also believed that avoiding anti-dumping duties on solar panel imports will help the Prime Minister improve trade ties with China and USA, when he meets with the leaders of the two countries this month. Recently, Piyush Goyal, Minister for New and Renewable Energy, said in an interactive session with solar power developers and manufacturers that government policies are going to stay to help investors plan accordingly. However, he added that the government is will strengthen the domestic solar manufacturing sector and an adequate market would be made available to them. Goyal revealed that NTPC is coming up with 1000 MW of solar power projects which will use cells and modules made in India.

Ajay Goel, CEO, Tata Power Solar

Stakeholders are optimistic of steady growth in the sector. Ajay Goel, CEO of Tata Power Solar, told The Dollar Business, “Solar energy has a bright future in India and has the potential to solve the country’s endemic energy problems. Unfortunately, the domestic solar manufacturing sector has been struggling in the last few years and facing losses and low utilization due to subsidised imports." Goel added that the new approach of the government will help the sector grow. “The new government comes with a fresh perspective and approach, and has offered to support domestic industry on multiple fronts even without imposing any anti-dumping duty. For instance, the government is in process of deploying several policies and programs for domestic manufacturers and we are confident that under their leadership India’s solar manufacturing industry will revive, grow and thrive to compete with the best in the world."

This article was published on September 13, 2014.