Indian Makers Of Solar Parts Seek Protection From Cheap Imports

Bloomberg -- Indian producers of components used in solar panels have sought trade protections against a deluge of imports, including from China and Vietnam, arguing that safeguards against ‘dumping’ are needed to expand domestic capacity.

The Solar Ancillary Manufacturers’ Association, an industry lobby group, has written to the government seeking tariff and non-tariff barriers to curb the inflow of cheap solar products, Pradeep Kumar Kheruka, a director at the association, said in an interview. The state must instead encourage investment in local manufacturers of parts like solar glass, back sheets, and aluminum frames, he said.

“What we are seeking is a level playing field against imports,” said Kheruka, also the chairman of the nation’s largest solar glass maker Borosil Renewables Ltd. “Wherever there’s a policy distortion over there, we need a corresponding correction here.”

While India’s solar module industry has expanded thanks to Prime Minister Narendra Modi’s drive to boost clean energy, a substantial portion of local module manufacturers’ needs continue to be met with raw materials brought in from overseas.

The association has called on the government to reinstate an anti-dumping duty on solar glass, where 60% of demand is met with imports. A five-year levy imposed in 2017 helped the sector grow 17-fold. The industry is also demanding a mandate for module makers to use a certain amount of domestic content in their products, and a requirement for a government quality certification. 

The renewables ministry did not immediately respond to a request for comment. India has already placed steep import tariffs on solar modules and cells to discourage incoming shipments, with additional measures in the pipeline. The protections have aided a nearly five-fold expansion in domestic modules capacity.

“If we get a level playing field, we can double the solar glass capacity,” Keruka said. “Everyone’s ready.”