Saddled with US' hawkish attitude towards the country's National Solar Mission and domestic manufacturers feeling threatened due to massive dumping of cheap photo-voltaic (PV) products in the country from China, the solar industry is hoping that a probability of a Narendra Modi-led BJP Government at the Centre could be a possible panacea for all their problems.
Industry watchers opined that with Modi's known support for domestically produced equipments in the renewable energy sector, if a BJP Government led by him comes to power, the industry, which is facing pressure from the US via the WTO, could get a leg-up at the international level.
In the past 12 months, the US has twice complained to the WTO against India, alleging that New Delhi is unfairly blocking entry of solar equipments from their shores in its market. India on its part is in the process of countering the complaints as the Government has maintained that its policy regarding import of solar equipments is WTO-compliant.
An industry player on condition of anonymity told The Pioneer that Modi's liking for greater usage of domestic products in the solar energy sector is quite well known, and if he comes at the helm then all the tension which is building up between India and the US regarding the latter complaining to WTO about what it described as New Delhi unlawfully restricting import of solar equipments from Washington, could get defused.
With the US having considerably toned down its aggressive stance against Modi over the past few months, especially after he was named as the BJP's Prime Ministerial candidate, the simmering tension between both the nations could well die down. Sources added that in the probability of Modi becoming the Prime Minister, even the US could be forced to adopt a more cautious stance on the WTO matter, considering his visibly firm approach on matters related to national interest.
The Indian Solar Manufacturers' Association (ISMA), an umbrella body of 25 domestic solar manufacturers, has already given out a distress signal about their business suffering due to increased influx of thin films, PV cells and modules from the US and China in Indian market.
The Commerce Ministry has already issued a gazette notification to begin investigations into anti-dumping cases on PV cells from China, Taiwan, Malaysia and the US. Whether anti-dumping tax on equipments emanating out of these nations should be imposed or not, is a decision which the Government is expected to take by the third week of May.
Sources said that though a new Government at the Centre (expected to take over around the same time) will have no immediate impact on this particular issue, in the long run if a Modi-led BJP Government manages to come to power at the Centre, then even this issue could be resolved if New Delhi decides to adopt an aggressive stance against the US on the WTO issue.
Industry observers said that in case New Delhi successfully counters US' complaints with the WTO and if the Commerce Ministry at the same time decides to impose anti-dumping tax on imports from Washington as well as from China and Malaysia, then the US could be taken by surprise.
This new found confidence among the solar manufacturers also stems from the fact that Modi has been keenly batting for greater usage of alternative energy sources. As Gujarat Chief Minister, he had been the moving force behind setting up the world's first canal-top 1 mw solar project which is situated on the Narmada branch canal network in Mehsana.
In fact in one of his recent election rallies, Modi had indicated he wants to reduce India's dependence on coal, which generates 68% of electricity. Moreover the BJP in its manifesto for lok Sabha polls has clearly stated that if voted to power, it would strengthen the National Solar Mission and harness oil, gas, hydel, ocean and wind energies.