Question : Solar Imports from China

(a) the total quantity and value of solar imports from China during the last three years and the current year;
(b) whether the cheap Chinese imports are making it increasingly attractive for solar manufacturers to choose imports over manufacturing the parts themselves which is hurting Government''s ''Make-in-India'' mission;
(c) if so, the reaction of the Government thereto;
(d) whether the Government has discussed the matter with the indigenous solar manufacturers to look into their problems and to minimize imports from China; and
(e) if so, the details thereof along with the corrective steps taken or proposed to be taken by the Government in this regard?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)

a) to e): A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 247 FOR ANSWER ON 20th MARCH, 2017
REGARDING “SOLAR IMPORTS FROM CHINA”

(a) : Quantity and value of imports of solar cell under Exim Code 85414011 (solar cells/photovoltaic cells whether or not assembled in module/panel ) and 85414019 (other Photocells) from China and total imports value wise during the last three years and the current year is as under:

Import of solar cells/photovoltaic cells and other photocells from China
Year 85414011
(solar cells/ photovoltaic cells) 85414019
(other photocells)
Qty.
(in million Nos) Val
(US
Million $) India’s
Total
Imports
(US
Million $) Qty.
(in million Nos) Val
(US Million $) India’s
Total
Imports
(US Million $)
2013-14 100.43 596.75 711.15 2.19 31.55 39.72
2014-15 113.56 603.34 820.95 3.12 43.39 88.78
2015-16 163.02 1960.26 2344.56 4.46 49.96 64.58
2016-17* 181.52 1614.79 1842.18 7.45 41.71 45.40
* Figures are provisional for the period April-Dec,2016
(b) to (c): India does not have enough manufacturing capacity currently for solar cells and modules to cover full demand. We are dependent on imports and China is our biggest supplier of solar cells and modules; and in some cases the prices are much lower than what is being offered by domestic manufacturers.
To reduce our dependence on imports, the Government is promoting Solar PV manufacturing through National Solar Mission by taking several measures including fiscal and promotional incentives such as capital subsidy, tax holiday on the earnings for 10 years, generation based incentive, accelerated depreciation, viability gap funding (VGF), financing solar rooftop systems as part of home loan, concessional excise and custom duties, preferential tariff for power generation from renewables, and Foreign Direct Investment (FDI) up to 100 per cent under the automatic route etc.
This apart, the Government has been supporting solar manufacturing by way of various mechanisms such as Modified Special Incentive Package Scheme (M-SIPS) of Ministry of Electronics & Information Technology (MeitY).
Further, Ministry of New & Renewable Energy (MNRE) has also been promoting various Solar applications like lighting systems, solar lanterns, solar cookers, solar geysers and solar pumps through Off Grid and Decentralised Solar Applications Programme with Central Financial Assistance (CFA). This has also helped in facilitation of domestic manufacturing of above products. Lead Acid batteries which are the main source of storage in solar are manufactured in the country.
(d) to (e): While the Government is concerned about domestic manufacturers, our bigger concern is the price of power which is consumed by large number of consumers. Government is balancing both these categories by allowing imports to increase the generating capacity and providing support to domestic manufactures through a provision of reserving some capacities for domestic cells and modules which gives assured market to domestic manufacturers.
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