FAQs – Anti-dumping on solar panels in India

Q) Who has filed the petition?

A) The petition for this investigation was submitted by Indian Solar Manufacturers Association (ISMA) on behalf of Indosolar, Websol and Jupiter Solar. Adani Solar could not be a part of the petition as it is also an importer of solar modules but it supports the petition from outside.

Q) Imports from which countries are being investigated?

A) Directorate General of Anti-Dumping and Allied Duties (DGAD) will probe import of solar cells and modules from China, Taiwan and Malaysia.

Q) What is the timeline for imposition of solar anti-dumping duties in India?

A) The investigation was initiated on 21 July 2017. Last date for affected parties to submit their response is 40 days from the beginning of the investigation, i.e., 30th August 2017. DGAD has the power to recommend provisional duties 60 days from the initiation of the investigation, i.e., around 18th September 2017. The Ministry of Finance can then notify the provisional duty in a short period of time. Provisional duty is usually imposed in extraordinary cases. If provisional duties are not imposed, the investigation will continue for another 10 months, i.e., until 21st July 2018. At that time, DGAD can recommend anti-dumping duties and the Ministry of Finance can notify it.

Q) Who will benefit from anti-dumping duties?

A) India’s current account deficit against China will improve. The beiggest beneficiary will be companies that manufacture both cells and modules or just cells within India. This includes companies such as Adani Solar, Indo Solar, Websol, Jupiter Solar, etc. Only module manufacturers will not benefit. This includes companies such as Vikram Solar, Waaree and Alpex Solar.

Q) Who will stand to lose from anti-dumping duties?

A) Almost everyone in the solar sector except the cell and module manufacturers stand to lose from ant-dumping duties. Demand will reduce and jobs will be lost.

Q) How much will solar module prices increase by if anti-dumping duties are enforced?

A) Ant-dumping duties can be as high as 40-70% of the module cost. Most major global solar suppliers are based out of the countries under investigation. This means that Indian companies importing cells and modules will need to find suppliers outside of the four countries under investigation. Prices of modules from these countries can be at least 10-15% higher and availability can be limited. Even Indian cell and module manufacturers will take advantage of limited supply to increase their prices. This will seriously limit India’s ability to grow the solar sector.

Source: Loop Solar