Just three days prior to the BJP-led NDA Government's assumption of power at the Centre, the Commerce Ministry on Friday recommended levy of anti-dumping duty on solar cells imported from the US, China, and Chinese Taipei. The move is likely to provide relief to stressed domestic manufacturers of these cells.
The ministry has suggested restrictive duty levy in the range of $0.11 to $0.81 per watt. The decision, which was much anticipated, came after the Commerce Ministry concluded an 18 month long probe into the allegations levelled by domestic manufacturers that cheap solar cells emanating from the aforementioned nations were being pumped into the country, which was resulting in heavy losses for them.
Incidentally the notification regarding levying of duties would have to be issued by the Narendra Modi-led Government, which will assume charge at the Centre on May 26.Interestingly promotion of solar energy has been a pet project of Prime Minister designate Narendra Modi, who during his tenure as Gujarat Chief Minister, had initiated a pilot project called the Narmada canal-top project, where solar panels were installed on Narmada river canal.
The Pioneer had reported earlier how renewable energy projects could get a boost once a Narendra Modi-led Government comes to power, considering his known keenness for promoting the sector. Also owing to his affinity towards domestic products, the decision by the Commerce Ministry is going to be a shot in the arm for Indian solar cells producers.
The Directorate General of Anti-dumping and Allied Duties (DGAD) has recommended duty on imports of solar cells from Malaysia, China, Chinese Taipei and the US.The levy would be applicable "whether or not assembled partially or fully in modules or panels or on glass or some other suitable substrates, originating in or exported" from these countries, a Commerce Ministry notification said.
"The product under consideration has been exported to India from subject countries below its normal value, thus resulting in dumping of the product; the domestic industry has suffered material injury due to dumping of the product under consideration," the DGAD probe has concluded.