Solar Power Companies in India have written to the Directorate General of Anti-Dumping (DGAD) seeking imposition of duty on imports of panels, modules and glass from China, Malaysia and Taiwan.
The petitioner – Indian Solar Manufacturer’s Association (ISMA) – wrote to DGAD saying that though the demand for the subject goods increased significantly as compared to the base year, the domestic industry did not get the benefit due to the presence of dumped imports.
The association said imports from these countries have triggered “serious adverse effects on the domestic industry” and has forced the Indian companies to cut prices.
“The fact that almost 81 per cent of the market share has been held by dumped imports during the proposed POI (period of investigation) clearly shows the bleeding situation of Indian solar manufacturers and it further shows why it is very important to impose AD (anti-dumping) duties on dumped imports of subject goods from subject countries,” it said.
It said in a scenario of increasing demand for the products, the domestic industry should have achieved a significant market share and operated at moderate capacity utilization, if not 100 per cent and more.
On the contrary, the domestic industry has only been able to operate its plant at below par levels due to the presence of dumped imports from subject countries.
The price undercutting, the letter mentioned, has been very significant and the domestic industry has not been able to match the dumped prices.
“The growth also of the domestic industry have been under pressure on various parameters and the benefits of reduction in wages per unit of production, better productivity etc have not been reflected in the overall performance of the domestic industry as a result of dumping. Thus, the domestic industry suffered material injury,” it said.
As per the letter, the domestic industry has invested hundreds of crores of rupees in the goods which are likely to become a “sunken investment” if the corrective action to address dumping is not initiated immediately.
The domestic industry has been repeatedly approaching the government to impose anti-dumping duty on imported solar goods. While the DGAD had in 2012 proposed an anti-dumping duty of $0.48 per unit to $0.81 per unit on solar cells, the decision never saw the light of the day from finance ministry.
Three years later, when the industry had again knocked the doors of DGAD seeking import duty, power minister Piyush Goyal assured the domestic companies that there will be enough opportunity in the market as the government has scaled up solar capacity addition target to 1 lakh MW by 2022.
Thus, the case was dropped by the industry.