Claiming that large scale flooding of cheap photo voltaic (PV) products from China, Taiwan, Malaysia and the US has crippled the domestic solar power gear industry resulting in a loss of Rs 3,000 crore to the Government and Rs 1,000 crore loss to the local industry, the Indian Solar Manufacturers Association (ISMA) has sought imposition of 30 to 35 per cent anti-dumping duty on products being shipped from these countries.
“Thin-film, and silicon PV cells and modules imported into India from USA and other Asian countries are being sold at ridiculously low prices bleeding the local industry and violating international fair trade regulations. This has also led to losses worth Rs 1,000 crore to the Indian solar manufacturers and over Rs 3,000 crore to the Indian exchequer,” said H R Gupta, member of the ISMA and Managing Director of Indosolar limited.
ISMA, which consists of 25 domestic solar manufacturers, said that in January 2013, the Commerce Ministry had issued a gazette notification to begin investigations into anti-dumping cases on PV cells from China, Taiwan, Malaysia and the US. The order on this should be out by late next month.
Gupta said that indications from the Government regarding the imposition of anti-dumping duties on cheap products from the aforementioned countries are positive. Though at the same time, he added that the next three weeks are crucial as a positive decision by the Government would help strengthen the domestic industry.
The industry body also argued that countries in the European Union (EU) and the Middle East, the US, China and South Africa require locally manufactured equipments to be used in solar farms thereby ensuring energy security and also employment to their countrymen.
Recently, the European Union imposed anti-dumping duty of around 48 per cent on Chinese solar imports. US Commerce Department too had imposed anti-dumping duties ranging from 29.18 per cent to 254.66 per cent on solar-energy cells imported from China in December 2012, ISMA said.
Contrary to the claims of solar developers about quality, India-made solar cells and modules are compliant with German certified IEC specs and calibrated in German laboratories, ISMA said.
“India has been supplying cells and modules to all major countries in Europe and Japan who have by far the most stringent quality standards and has found a ready market in these discerning countries,” it added.
The body urged the Government to check these rising imports via dumping or the entire Indian solar manufacturing industry might face the risk of becoming dependant on imports, thus even risking the country's energy security.