Domestic solar manufacturers stare at uncertainty as protective tariffs expire this month. They also fear that the policy uncertainty pending the introduction of the basic tariff next year could affect the survival of the sector.
According to a statement by the All India Solar Industries Association (AISIA), there will be no customs barriers for the import of solar modules from the date of the SGD [safeguard duties] until the BCD implementation date in April 2022. That nine month period will have crippling effects on domestic manufacturers, which can also lead to unit closures in India and put 200,000 jobs in the industry at risk. If the government does not take substantial action, history will repeat itself, turning India into a solar dump. ”
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Since the tariffs on raw materials remain unchanged, there are also enormous cost differences for domestically produced solar modules. The high tariffs on imported raw materials will make domestic products more expensive compared to internationally produced modules.
The association describes the lack of clarity about interim measures as worrying and is preventing local players from buying solar cells and modules from Indian manufacturers.
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“In fact, we are already experiencing delays in project installations and order cancellations, as most are waiting for the security obligation to end in order to place orders for internationally manufactured modules. As of August, 100 percent of the solar module equipment will be imported without any customs restrictions or guidelines in order to support Indian manufacturers in maintaining operations, ”it says.
Given the economies of scale, it is imperative to protect the interests of domestic manufacturers and instill confidence in them, she added. In order to provide immediate respite, it has been suggested that the ALMM government. could introduce [approved list of models and manufacturers] BCD or impose a provisional anti-dumping duty during the nine month period to help the sector continue its business operations.
“While we are positive about government support for the sector, transparency and clarification of existing laws will bring us some relief,” she added.