Solar industry, users split over anti-dumping

Assocham said that the rise in project cost will also lead to an upward revision in tariff.

By: ENS Economic Bureau | New Delhi | Published: August 3, 2014 1:17:44 am

Even as finance minister Arun Jaitley is expected to take a decision on whether to impose anti-dumping duty on import of solar cells by mid-August, the domestic industry seems split in the middle over the issue.

While the Associated Chamber of Commerce and Industry of India has in a note submitted to the finance ministry called for anti-dumping duty not being slapped on imports, the Solar Manufacturers Association is rooting for imposition of the duty.

Citing that imposition of anti-dumping duty will increase the project cost anywhere between 19 and 75 per cent, Assocham recommended against any such move. It also said that the rise in project cost will also lead to an upward revision in tariff.

“The resultant corresponding revised tariff will be Rs 9.1 per kWH and Rs 13.51 per kWH respectively as against Rs 7.72 per kWH in CERC award,” said a statement issued by Assocham.

On the other hand the Indian Solar Manufacturer’s Association wants the duty to be in place. Even a white paper on solar manufacturing in India by KPMG also rooted for imposing the duty.

“Indian manufacturing is competitive but it suffers due to lack of incentives which has been extended to manufacturing in other nations. The concern of sharp price rise or inadequate supply on implementation of suitable Anti Dumping Duty is misplaced,” said the paper.

Earlier the Director General of anti-dumping and allied-duties (DGAD) recommended the imposition of anti-dumping duty on import of solar cells/modules from China, US, Malaysia and Taiwan from $0.11 to $0.81.

However since then, hectic representations have been made from both sides.

“The proposed anti dumping duty would increase costs all around, thus negating all the efforts made so far. Generation cost of power by developers is a ‘pass through activity’ and ultimate impact comes to the power distribution companies and thereby on the energy consumers,” said Assocham.

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