New Delhi: India is the largest importer of Chinese solar equipments, now plans to put a 70% safeguard duty on the cells and modules that are shipped from China and Malaysia giving the reason of threat of loss to the domestic industry.
Taking action on an application filed by five local cell and module makers, the Directorate General of Safeguards, Customs and Central Excise proposed it in a document dated 5th January which would be effective for 200 days.
“Existing critical circumstances justify the immediate imposition of a provisional safeguard duty in order to save the domestic industry from further serious injury, which would be difficult to repair,” the Finance Ministry said in the document, also stating the concern for potential job losses.
Document by the ministry stated that China’s solar exports to India comprised of about 1.52% of its overall global exports in the year 2012. The figures surged to 22% in 2016.
“India’s solar story is built on Chinese panels and the duty, if implemented, would mean the end of record low solar tariffs that we saw in 2017,” said Vandana Gombar, a BNEF analyst.
The five domestic manufacturers that filed an application on 5 December demanding a duty on imports of solar cells were- Adani Enterprises Ltd-backed Mundra Solar PV Ltd, Indosolar Ltd, Jupiter Solar Power Ltd, Websol Energy Systems Ltd and Helios Photo Voltaic Ltd.