The Solar Energy Corporation of India (SECI) has cancelled the projects tendered under the domestic content requirement (DCR) category in Bhadla Solar Park, Rajasthan; these projects fell under the National Solar Mission Phase II, Batch 4, the SECI stated in a release.
The SECI had tendered 100 MW of solar in Phase-III of the park under the DCR category and 50 MW in Phase-IV. These projects have been put under the Open category now.
Mercom has previously reported that the United States had pressed for rapid enforcement of World Trade Organization (WTO) which it won against India regarding the Domestic Content Requirements (DCR) for manufacturing solar cells and modules.
Under this batch, 200 MW under DCR category has yet to be auctioned, while 25 MW has been auctioned in Gujarat. With the recent development, the remaining 200 MW capacity under DCR category might be in jeopardy of being cancelled or retendered under Open category. A SECI official confirmed that in the future there will be no tenders under the DCR category by SECI.
“The WTO ruling is finally hitting home as domestic manufacturers that depend on DCR projects see the market shrink. With Chinese solar module prices declining heavily over the last year it has been challenging for Indian manufacturers to compete,” said Raj Prabhu, CEO of Mercom Capital Group.
After the loss of the WTO case, India is expected to go ahead and develop already contracted projects as this ruling was not retroactive. DCR Projects that have not gone past the letter of intent stage are expected to be cancelled or moved to open category.