Question : Import of Solar Panels

(a) whether almost 90 per cent of the domestic demand for solar panels is met by imports from other countries and if so, the details thereof;

(b) whether the cheap and sub-standard solar panels and modules have been dumped in the Indian market by some countries thereby ruining the domestic production and capability for generation of more power and if so, the details thereof;

(c) the details of the quantum and volume of imports of solar cells and modules from China during the past five years, year-wise;

(d) whether the Government proposes to increase the duty on the solar modules and cells imported from other countries, particularly from China, with a view to protect the domestic manufacturers and if so, the details thereof; and

(e) whether such imposition of import duty would affect the sunrise industries in the country and if so, the details thereof?

THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER (I/C)
(SHRI R.K. SINGH)

(a) As per the Report dated 16th July, 2018 from Directorate General of Trade Remedies (DGTR), the quantum of imported solar cells/ modules is around 90%. The year-wise percentage calculated from this report is as follows:
Year Imports (MW) Indian Production [excluding Special Economic Zone (SEZ)] (MW) Total of (Imports + Indian Production)
(MW) Imports as % Total
(a) (b) (c) d=(b)+(c) (e)
2014-15 1275 170 1445 88.24
2015-16 4186 206 4392 95.31
2016-17 6375 587 6962 91.57
2017-18 (till Sep. 2017) 4917 421 5338 92.11
2017-18 (annualized) 9833 842 10675 92.11

(b) DGTR in its reports dated 16.07.2018 referred above, has noted that imports of the solar cells/ modules PUC are taking place at very low prices resulting in drop in sales realisation of domestic industry thereby hampering the domestic industry’s ability to compete and make and sell the solar cells/ modules. However, this report has not commented on the issue of dumping.

(c) The details of the solar cells/photovoltaic cells whether or not assembled in module/panel, imported from China in last five years is as follows:

Year Value in Million US$
2013-14 596.73
2014-15 603.34
2015-16 1960.26
2016-17 2817.34
2017-18 3418.96
Source: Data from Export-Import Data Bank, Department of Commerce, Ministry of Commerce & Industry; Website: http://commerce-app.gov.in/eidb/

(d) DGTR in its above referred Report dated 16.07.2018, has recommended imposition of safeguard duty on imports of solar cells/ modules into India in terms of Rule 12 of the Customs Tariff (Identification And Assessment of Safeguard Duty) Rules’97, for a period of two years as follows:
Year Safeguard duty recommended
First Year Safeguard duty @ 25% ad valorem
Second Year (for first 6 months) Safeguard duty @ 20% ad valorem
Second Year (for next 6 months) Safeguard duty @ 15% ad valorem

(e) DGTR in its above referred Report dated 16.07.2018, has noted that levy of Safeguard duty would not only lead to mitigation of serious injury to the domestic solar cell/ module manufacturers but would also improve viability of the upstream and downstream industry associated in the value chain of the manufacturing of solar cells /modules.
*****