India may shun Anti-Dumping Duty on Solar Power Gear Imports

In its effort to reduce country’s dependence on fossil fuel, the government may refrain from imposing anti-dumping duty on cheap solar power gear imports. If applied it would increase the price of solar power production by at least Rs 16 million per MW and in turn lead to revision in Power Purchase Agreement (PPA).

The renewable energy ministry however will look into the dumping case filed by some domestic manufacturers next month. Major manufacturers like Moser Baer, Indosolar, and Lanco Solar, which have been hit hard by the surge of imported solar power equipment in the country, have been lobbying for anti-dumping duties on imported equipment. The imports, on which the duty is proposed to be imposed are from nations including the US, China, Taiwan and Malaysia.

Presently, the government is assessing the impact of imposing the anti-dumping duty, with the view of providing the necessary boost to the industry, the Commerce Ministry has undertaken a preliminary inquiry into the impact of large-scale import of solar modules on the domestic manufacturers. It is also contemplating for incentivizing foreign producers, which come up and set up operations here and create jobs, like it was done 30 years ago in the auto sector.