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NEW DELHI: A surge in duty-free solar imports from southeast Asian countries that have free trade agreement with India, have raised suspicion of China rerouting supplies to escape customs duty but the government is unlikely to slap safeguard duty.
Available data shows the share of solar modules from FTA countries rising to 48% of total imports in the first two months of the current fiscal against 52% in 2022-23. But officials said safeguard duty is not feasible because of FTA and could also delay projects as domestic supplies lag demand.
India began charging basic customs duty of 40% on solar modules and 25% on cells from April last year to ensure level field for domestic manufacturing. But as a relief to projects bid out before March 9, 2021, when the Centre announced its intention to impose BCD, completion timelines were extended.
A US commerce department report had in December said cells and modules coming from Vietnam, Cambodia, Malaysia and Thailand are made using components from China and exported to circumvent anti-dumping and countervailing duties imposed by Washington.
India is facing a similar situation, domestic manufacturers said. “India has to rapidly expand domestic manufacturing base as 220-280 GW solar capacity is to be added in the next few years. Each megawatt of solar module manufacturing entails employment worth Rs 35 lakh,” North India Module Manufacturer Association president Manish Gupta said to underline need for protection.
India currently has a module manufacturing capacity of 40 (GW) gigawatts. This is expected to reach 50 GW by next year and 95-100 GW by 2026. Solar cell manufacturing capacity is estimated nearly 5 GW and expected to grow seven-fold by the end of the decade, green energy market tracker Mercom had said in January.
Available data shows the share of solar modules from FTA countries rising to 48% of total imports in the first two months of the current fiscal against 52% in 2022-23. But officials said safeguard duty is not feasible because of FTA and could also delay projects as domestic supplies lag demand.
India began charging basic customs duty of 40% on solar modules and 25% on cells from April last year to ensure level field for domestic manufacturing. But as a relief to projects bid out before March 9, 2021, when the Centre announced its intention to impose BCD, completion timelines were extended.
A US commerce department report had in December said cells and modules coming from Vietnam, Cambodia, Malaysia and Thailand are made using components from China and exported to circumvent anti-dumping and countervailing duties imposed by Washington.
India is facing a similar situation, domestic manufacturers said. “India has to rapidly expand domestic manufacturing base as 220-280 GW solar capacity is to be added in the next few years. Each megawatt of solar module manufacturing entails employment worth Rs 35 lakh,” North India Module Manufacturer Association president Manish Gupta said to underline need for protection.
India currently has a module manufacturing capacity of 40 (GW) gigawatts. This is expected to reach 50 GW by next year and 95-100 GW by 2026. Solar cell manufacturing capacity is estimated nearly 5 GW and expected to grow seven-fold by the end of the decade, green energy market tracker Mercom had said in January.
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