Anti
dumping duty
Definition-
“Dumping is supposed to occur when the ‘export price’ of the goods is less than
the ‘normal value’ of the articles sold in the domestic market of the exporter”
Indian solar (PV) manufacturer perspective
·
Indian
solar PV manufacturers industry is largely smashed by cheap, large scale
imported PV modules and cells from the countries like china, U.S, Malaysia and
Taiwan. In phase 1 Domestic Content Ratio DCR was mandatory only on crystalline
technology, so that project developers were choose thin film technology which
was mostly imported from U.S at low cost with the support of us EXIM bank.
though Under the draft policy for phase 2 MNRE has considering several options
to implement DCR it is hard to predict what kind of decision MNRE will take (by
considering project developers perspective).
·
In
countries like U.S, china governments are providing lands at low cost, loan at
1-2% interest rates and subsidies financing model to the manufacturing
companies due to all this they are capable to spend hefty amount on R&D and
vertical integration which is reducing the cost of product. This is unfair for
domestic players as they charged by 13% interest rates, low class technology,
restricted capacity scaling. Many experts agree with the fact that thin film
technology is not suitable for Indian environment but due to the low cost and
attractive interest rates many developers were choose it.
·
From
ISMA point of view anti dumping should be in charge along with strict
instruction on DCR.
Project developer’s perspective
·
Solar
Independent Power Producer Association (SIPPA) has come up to oppose anti
dumping duty. Accordingly to them instead of applying anti dumping duty
government should have to take some long term measures to protect domestic
solar industry.
·
A recent research report by the Center for
Energy Environment and Water (CEEW) has pointed out that very few Indian
developers have adopted Crystalline Technology due to the import restrictions
under the Solar Mission 2020 initiative. “Though there is numerous advanced
Crystalline Silicon Technologies available the world over, the developers’
choice is restricted to domestically manufacture solar PV panels in this
category.
·
Indian manufactures of crystalline silicon based
modules import all major raw materials like poly silicon waters and cells and
the prices of such raw materials have also crashed due to the heightened
demand-supply gap. “In such a situation imposition of anti-dumping duty on
solar photovoltaic modules would be counterproductive to the country’s solar
aspirations.
·
Also If anti-dumping is imposed on solar
imports, cost of solar power in India is bound to go up which will be borne by
distribution companies and commercial consumers (as most of the DISCOMS are
already poor in state).
After assessing both the perspectives MNRE
should have to take unbiased decision to protect Indian solar industry. Only
imposing anti-dumping duties might work for the short-term, but it might de-incentivize
innovation and investment in R&D. If India wants to improve its
manufacturing, then it is imperative that a competitive advantage is
maintained through investment is R&D and efficiency improvements.
Whether to impose
duty or not is not the big question, as industry is going to face little bit
hard situation by either decision, the question is what measures MNRE will take
to sustain domestic industry in long term basis.
