PFCL Floats Empanelment Tender for Metering Infrastructure Service Providers

Solarium Green Energy Receives BSE Nod for Initial Public Offering

Power Transmission Company Kalpataru Projects Raises ₹10 Billion in QIP

Himachal Regulator Approves Tariff for 900 MW Hybrid Power Projects

Daily News Wrap-Up: HPERC Allows DISCOM To Procure 550 MW Solar Power

MES Invites Bids for Maintenance of 1.7 MW Solar Project

Exploring Solar Open Access Potential in Odisha and Haryana

Karnataka Floats EPC Tender for 1.2 MW Solar Project

Himachal Regulator Allows DISCOM to Procure 550 MW Solar Power from SECI

Agri-Solar Solutions Provider GK Energy Files Papers for ₹5.01 Billion IPO

<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2024/10/amazon_polly_70799.mp3?version=1728911230">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table>The Directorate General of Trade Remedies (<a href="https://www.dgtr.gov.in/" target="_blank" rel="noopener">DGTR</a>) 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&#8217;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 &#8220;like articles&#8221; 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 <a href="https://www.mercomindia.com/dgtr-anti-dumping-probe-solar-glass" target="_blank" rel="noopener">initiated</a> 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 <a href="https://www.mercomindia.com/dgtr-extension-anti-dumping-duty-eva-backsheets" target="_blank" rel="noopener">recommended</a> the extension of anti-dumping duty on the imports of Ethylene Vinyl Acetate backsheets originating in or exported from China for five years.

DGTR Opens Anti-Dumping Investigation into Solar Cell Imports from China

As the ongoing uncertainty around Safeguard Duty imposition looms large over the domestic solar sector, the Solar Power Developers Association (SPDA) has written to the commerce ministry seeking complete exemption of the duty for projects currently under development.
To give some context to the fate of Safeguard Duty, the Directorate General of Trade Remedies (<a href="http://www.dgtr.gov.in/">DGTR</a>) recently <a href="https://mercomindia.com/25-percent-dgtr-safeguard-duty-recommendation/">recommended</a> a 25 percent safeguard duty on solar cell and module imports from China and Malaysia for the first year, followed by a phased down approach for a second year. In the first six months of the second year, a safeguard duty of 20 percent will be payable by exporters to India and in the latter half of the second year, exporters will pay a safeguard duty of 15 percent.
While the imposition of recommended rate of duty is still under consideration, the SPDA has now requested the complete exemption of the duty saying such a move can jeopardize investments worth ₹1 trillion and kill thousands of jobs.
Commenting on the development, Shekhar Dutt, the director general of SPDA, told Mercom, “With the DGTR’s recommendations of 25 percent duty, the industry is concerned about the thousands of MW of projects whose PPA/bids are closed and in many cases deliveries of modules are expected to commence shortly. SPDA has requested exempting such projects from payment of safeguard duty. We trust that the concerned authorities would take a rational decision on this issue in the larger interest of the National Solar Mission.
In a letter addressed to the commerce secretary, the SPDA said, &#8220;Such recommendations on Safeguard duty could jeopardize availability of low cost energy to the consumers. The duty could also kill thousands of jobs created from the down-stream activities of solar power generation including the manufacturing sector”.
According to SPDA, the viability of around 27,000 MW is at stake as the cost of these projects will be additionally burdened by the imposition. Moreover, the entire solar mission will lose its objective endangering thousands of jobs, many interdependent MSMEs catering their goods and services to this sector and finally turning these projects into NPAs (bad loans), as per SPDA.
In its letter, the SPDA also noted that in the conclusion of the final findings, the DGTR has also highlighted that &#8220;there will be impact on solar power developers and also on ultimate consumers as a result of safeguard duty on the product under consideration (solar equipment).&#8221;
The letter also highlighted that the submissions are not regarding appropriateness of the duty or its quantum rather. However, the association wants to draw attention towards applicability or treatment of this duty on the ongoing projects which have been allocated at the tariffs discovered under the competitive bidding process.
The SPDA also cautioned against the distribution companies (DISCOMs), saying that it is very likely that they will not take the burden of increased tariff and would certainly oppose any such pass-through in the tribunals and courts. “The DISCOMs will not purchase solar power as soon as the tariff increases above ₹3/kWh on account of safeguard duty”.
Earlier this year, the government <a href="https://mercomindia.com/mnre-change-in-law-compensation-solar/">amended the guidelines</a> for tariff-based competitive bidding process for the procurement of power from grid-connected solar projects. To remove any ambiguity, the MNRE stated, “Change in the rates of any taxes as mentioned in clause 5.7.2 of Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects, includes change in rates of taxes, duties and cess”. Further, in case a change in law results in any adverse financial loss or gain to the solar power generator then, under the new amendment, the MNRE entitled them to compensation by the other party to ensure that the power generator is not adversely affected.
The SPDA addressed the pass-through option saying, &#8220;Even if the revised bidding norms are to be interpreted to allow pass-through, the same is yet to be tested and established under regulatory process. The process is uncertain and time consuming and does not provide any assurance of relief to the developers.&#8221;
&nbsp;

Solar Developers Request Exemption from Safeguard Duty for Ongoing Projects

commerce-ministry

Get the most relevant India solar and clean energy news.

RECENT POSTS