Dumping of PV products causing loss to Indian economy

According to reports, dumping of photovoltaic products by China, Taiwan, Malyasia and the United States is causing losses to the tune of Rs 3000 crore to India and Rs 1000 crore to the domestic solar industry, according to their association which wants 30 per cent anti-dumping duty to be imposed.

“Thin-film, and silicon PV cells and modules imported into India from USA and other Asian countries are being sold at ridiculously low prices bleeding the local industry and violating international fair trade regulations.

“This has also led to losses of Rs 1000 crore to the Indian solar manufacturers and over Rs 3000 crore to Indian exchequer,” said H R Gupta, member of the Indian Solar Manufacturers Association (ISMA) and Managing Director of Indosolar Limited.

The association, which includes major domestic players, has said that in January 2013, Ministry of Commerce started investigating into anti-dumping cases and PV cells from China, Taiwan, Malaysia and the US. The order on this should be out by late next month.

“The government is encouraging imports from China. This is being done despite the companies facing loses. On the other hand, the domestic players are also facing loses locally,” said another member of ISMA. “We hope that the government imposes anti-dumping duty of around 30 per cent in this cases as these companies are selling the products at low price, he said.

The European Union has imposed anti-dumping duty of around 48 per cent on Chinese solar imports whereas the US too has imposed a similar duty ranging from 29.18 per cent to 254 per cent on solar energy cells imported from China.

Interestingly, in 2013-14, the Indian industry has exported PV products worth Rs 200 crore.

Source: Economic times