The renewable energy ministry has cautioned anti-dumping authorities against imposing high duties on imported solar equipment on the grounds that this can raise tariffs, make many projects unviable and seriously impede the growth of the sector.
In a note to the Directorate General of Anti Dumping (DGAD), the ministry said domestic capacity is far short of the requirement of India’s 100 gigawatt target of solar power by 2022, and that developers should be given sufficient notice about any duty to be levied because “sudden imposition” can disrupt ongoing projects and create legal complications.
The ministry wants to support local units, but it has argued that if at all a duty is imposed on imported solar cells, panels or modules, “it should be moderate so that there is not too much impact on solar power tariffs, otherwise the growth of the solar sector may be negatively affected”.
Further, the finance ministry should consider transferring the proceeds from any such duty to the ministry of new and renewable energy (MNRE) to help strengthen local manufacturing.
The DGAD had sought the ministry’s opinion on a petition by the Indian Solar Manufacturers Association (ISMA) in June this year seeking anti dumping duty on solar equipment from China, Malaysia and Taiwan, which are hurting local industry.