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JUN 11 2014

Move to slap duty on solar panel imports to hit energy push: CII

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 11th JUN 2014

The new government should review the official recommendation to impose anti-dumping duty on imports of solar panels or cells from Malaysia, the US, Taiwan and China as it would affect the renewable energy push in India, a CII official said today.

Sumant Sinha, Chairman of the National Renewable Energy Committee of Confederation of Indian Industry (CII), said the Director General of Anti Dumping recommended to the Finance Ministry that Anti Dumping Duty (ADD) upto $0.81 (Rs 48.6 per Watt) be imposed on imports from these countries.

"The imposition of this ADD will very adversely impact the growth of the Solar Energy Plans in India, particularly given the fact that these plans are at a nascent stage and require nurturing and encouragement," he said here.

The levy would be applicable on solar modules and cells assembled partially or fully, originating in or exported from these countries.

It has been proposed that Chinese imports should attract duties of $0.64-0.81 per watt while those from the US should attract a levy of $0.11-0.48 per watt.

Similarly, duties of $0.62 per watt and $0.59 per watt have been recommended for solar cell imports from Malaysia and Taipei, respectively.

These recommendations will lead to a complete collapse of the solar sector and affect India's ambitious solar programme of installing of over 22,000 MW of Solar Power by March 2022, Sinha said.

He appealed to Prime Minister Narendra Modi government to take a critical look at the anti dumping duty proposals. Sinha is also the Chairman and CEO RenewPower Ventures, which in involved in producing 500 mw of renewable energy.

The proposed move will benefit only a handful of Indian companies manufacturing solar panels who are not able to meet the local demand and anti-dumping duty will jack up costs, he claimed.

The imposition of ADD will immediately increase the cost of Solar Power to Rs 12/unit from Rs 6.50/ unit for consumers and render it unaffordable for rural consumers, Sinha said.

This increase in cost of generation of power would ultimately imply increase in the cost of power to the public at large or an end to India's solar programme, he claimed.

Expensive solar power will end the promise of rural electrification through clean energy and will push such constituents to rely on kerosene and diesel along with health hazards that come with harmful emissions during cooking in households, he added.

Tags

Daman and Diu Daman and Diu Finance Confederation of Indian Industry Renewable Energy Solar Energy China Energy Chinese imports United States Indus Power India solar power Solar

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