HYDERABAD: News that the government may impose safeguard duty on solar panel imports has Indian solar panel manufacturers excited. According to industry insiders, solar panel imports, especially those from China, have been posing a severe threat to domestic solar manufacturers, who have been complaining about lack of level playing field.
Currently, while solar panels are imported from nations like China, Malaysia, Taiwan and others, China alone accounts for more than 80 percent of imports. “While the interest rate on finance for solar panel manufacturers is just two to three percent in China, its 11 to 13 percent in India. We cannot manufacture at the same cost as the Chinese and are deprived of a level playing field. Though we have demanded an anti dumping duty on solar panel imports in the past, it was not possible due to various reasons like WTO regulations.
But, we are getting indications that the government is planning to impose a safeguard duty instead of anti-dumping duty on solar panel imports soon, to protect interests of domestic solar manufacturers,” said Narender Surana, MD of Surana Solar Ltd.
As importing solar panels costs less manufacturing them locally, manufacturers and power producers have found it beneficial to import, endangering the domestic industry.
Industry representatives say that the government, while explaining that an anti-dumping duty was not possible, had promised solar panel makers that it would make it mandatory to use domestic solar modules up to a level in solar power projects. However, even that move has hit a road block, with the World Trade Organisation (WTO) finding fault with it, citing global trade regulations.
“Anti dumping duty can be imposed, when we can prove that Chinese solar panel makers are dumping at a cheaper price in India than they sell in their country. This may not be possible. But, a safeguard duty can be imposed if the government feels that cheap imports from a country are harming local manufacturers. Industry has been taking up the issue with the government relentlessly and it is expected that the government is inclined toward bringing in a safeguard duty on solar panel imports this time. This is highly necessary to protect Indian solar panel manufacturers,” said Surender Pal Singh, Chairman of Premier Solar.