MNRE says only 300 MW of Indian solar cell plants are operational

Jun 24, 2014 - India has only 297 MW of operational manufacturing capacity for solar cells, while some 1,090 MW of existing plants are out of service currently, a document published today by the renewables ministry shows.

For example, Indosolar Ltd’s (BOM:533257) total cell capacity amounts to 450 MW, but only 80 MW is operational. Moser Baer India (BOM:517140) has 200 MW of idle photovoltaic (PV) cell capacity and zero online. Also, the solar arm of Indian power producer Tata Power (BOM:500400) is currently using only 70 MW of its 180 MW of cell production lines.

Last month, the Ministry of Commerce and Industry proposed anti-dumping duties of between USD 0.11 and USD 0.81 (EUR 0.08-0.60) per watt on imports of solar cells from the US, China, Malaysia and Taiwan. The move is intended to support local manufacturers but has also been criticised by many as illogical since India itself does not have sufficient capacity to satisfy solar equipment demand. Under its National Solar Mission, the Asian country aims to add 20 GW of solar parks by 2022. Several Indian states also have their own solar targets.

The Ministry of New and Renewable Energy (MNRE), which firmly opposes the levies, has already said that the anti-dumping duties will threaten many projects in the pipeline. Recently an anonymous senior official at the ministry told daily the Economic Times that the punitive measures would raise panel costs by 100%. According to consultancy Headway Solar India, developers will be able to finish not more than 450 MW of the 1,600 MW of PV projects currently in the pipeline if the anti-dumping duties are imposed.

The final decision on the levies will be taken by the Finance Ministry.

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