India's MNRE warns against high and sudden solar duties

India’s renewable energy ministry is calling for moderate, if any, anti-dumping duties on imported solar cells and modules, and an exemption for projects that have already completed the bidding process.

The ministry of new and renewable energy (MNRE) warns in a note to the Directorate General of Anti Dumping (DGAD), seen by the Economic Times, that introducing import tariffs suddenly will hurt projects in progress and lead to legal complications, unless developers are given enough time to prepare for the increase in photovoltaic (PV) product prices.

The DGAD's first hearing on the solar tariffs case will take place on December 12 after some delays.

In the fiscal year to March 31, 2017 India imported 5.7 GW of solar modules, or about 89% of the volumes it needed, mostly from China. The anti-dumping probe into solar imports from China, Taiwan and Malaysia, announced in July, covers all photovoltaic (PV) cells, whether or not assembled into modules or panels, including crystalline silicon and thin-film technologies.

Currently, India’s domestic solar manufacturing capacity cannot meet demand under the ambitious government plan for 100 GW solar power by 2022. Putting in place high import tariffs would lift project costs and impede growth, MNRE notes. It is proposing that proceeds from any solar anti-dumping duty be used to support domestic manufacturers, through “some WTO compliant production subsidy”.

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