Anti-Dumping Duty on Imported Solar Modules

The Designated Authority (Director General of Antidumping & Allied Duties) in the Ministry of Commerce & Industry in its Final findings dated 22.5.2014 has stated that

Solar Cells, Modules or Panels, Thin Films (hereinafter referred to as ‘subject goods’) have been exported to India from China PR, Chinese Taipei, Malaysia and USA (hereinafter referred to as ‘subject countries’) below its normal value, thus resulting in dumping of the subject goods;

i. The domestic industry represented by Indian Solar Manufacturers Association (ISMA) has suffered material injury due to dumping of the subject goods; and

ii. The material injury has been caused to the domestic industry by the dumped imports of the subject goods originating in or exported from China PR, Chinese Taipei, Malaysia and USA.

iii. The Designated Authority has further stated in its Final findings that having established positive dumping margin as well as material injury to the domestic industry caused by such dumped imports, imposition of definitive anti-dumping duty is required to offset dumping and injury. The Designated Authority has recommended to the Government for imposition of definitive anti-dumping duties ranging from US$ 0.11 per watt to US$ 0.81 per watt on the imports of the subject goods from subject countries. After the issue of Final findings by the Designated Authority, a number of representations arguing both for and against imposition of antidumping duties have been received by the Government. The recommendations of the Designated Authority and the representations received in this regard are under the consideration of the Ministry of Finance, Government of India.

The recommended anti-dumping duties, if imposed, may lead to some increase in the capital cost for the solar power developers. However, the collected anti-dumping duties can be placed in the hands of MNRE to provide additional subsidy to neutralize the additional capital cost of the solar power developers. Further, the National Clean Energy Fund, which is intended to develop clean energy in the country, can also be uitlised to provide subsidies to projects which may be affected by the anti-dumping duties.

The prices of solar cells and modules are market driven and no regulator has been notified by the Ministry of New & Renewable Energy (MNRE) for the purpose.

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.