The Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation into the imports of solar cells from China, whether or not assembled in solar modules, and to recommend the appropriate amount of anti-dumping duty, which, if levied, would be adequate to remove the injury to the domestic industry.

It has held that there is sufficient prima facie evidence that the solar cells originating from China are being dumped in the Indian market, causing injury to the domestic industry.

The investigation is in response to applications filed by five Indian companies alleging injury to the domestic industry due to dumped imports and seeking the imposition of an anti-dumping duty.

The present investigation will cover the period from April 1, 2023, to March 31, 2024. The injury investigation will cover the period from April 1, 2020, to March 31, 2023, and the present investigation’s period.

The parties to the investigation must provide their comments, substantiated with evidence, within 30 days.

In a gazette notification, DGTR said the volume of solar cell imports had increased significantly over the injury period, both in absolute terms and in relation to production and consumption in India. The price of imported cells from China has declined significantly, undercutting the prices of the domestic industry.

“Despite increased production capacities and demand in the market, the domestic industry is faced with significantly unutilized capacities and a negligible share in the market. This has resulted in significant piling up of inventories,” DGTR said.

The application was filed by FS India Solar Ventures, Jupiter International, RenewSys India, Tata Power Solar Systems, and TP Solar under the Customs Tariff Act, 1975, and the Customs Tariff (Identification, Assessment, and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.

Losses for Domestic Industry

The domestic industry claimed that the imports have resulted in significant financial losses, cash losses, and almost no return on investment. The domestic industry has also claimed three market segments for the subject goods: imports for re-export, projects with Domestic Content Requirements (DCR), and the open market.

Since the DCR market requires projects to compulsorily procure goods domestically, it is insulated from the ill effects of dumped imports. However, in the open market, the domestic industry cannot sell its goods and has practically no sales as it cannot compete with dumped imports.

The domestic industry has highlighted that significant capacity additions are being made in India, which are severely threatened if the dumped imports are not kept in check.

The products under consideration are solar cells or photovoltaic cells, assembled in modules or made into panels, produced using c-Si or thin film technology. The solar cells may be monocrystalline or multi-crystalline, which are included within the scope of the product under consideration.

Solar cells are manufactured mainly using two production technologies: crystalline silicon-based solar cell technology (c-Si) and thin film technology. Solar cells and modules or panels produced through c-Si-based and thin film technology are included within the scope of the product under consideration.

The applicants have proposed solar cells (monocrystalline and multicrystalline cells) and solar modules for consideration in the investigation.

DGTR has noted that the domestic industry has produced solar cells using c-Si technology and solar modules using thin film technology. However, the domestic industry has not produced solar modules using c-Si technology. While c-Si modules are being imported into the country, the domestic industry produces and supplies thin-film modules. In the absence of an identical or alike article in all respects, solar modules produced using thin film technology are considered ‘like article’ to solar modules produced using c-Si cells, closely resembling characteristics of the imported article.

Therefore, to initiate the investigation, products manufactured by the domestic industry are considered “like articles” to those imported from China.

The applicants have claimed that there are only six known producers of solar cells in India, including three of the applicants. However, DGTR has considered the production of solar cells by FS India Solar Ventures and Jupiter International only as part of the eligible domestic production.

In February, DGTR initiated an anti-dumping investigation on imports of textured tempered coated and uncoated glass originating in or exported from China and Vietnam.

A month earlier, it had recommended the extension of anti-dumping duty on the imports of Ethylene Vinyl Acetate backsheets originating in or exported from China for five years.