Price gap between local and imported solar modules trouble manufacturers in Andhra

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Power holiday for three days in a week in Andhra Pradesh is proving beneficial to China and European solar module importers indirectly.Though various module manufacturing companies are seeing an increase in number of enquires for solar modules, they are not sure if they would be converted into sales as cheaper options, in the form of imports from China, are available, according to a press report.

Importing finished modules attract no duties. On the other hand, the cost of module production for Indian companies is about 20 per cent higher due to local taxes. Many companies said are selling below cost of production. In India, the installed capacity of modules is about 2,000 mw and the demand is about 1,000 mw. Out of this, about 800 mw is contributed by imports while remaining came from domestic players, he said adding that government should make mandatory use of a set quantum of domestic modules in projects, it is reported.

The company has been quoting around Rs 32 a watt to deal with import competition. It has plans to add a 60 mw solar cell facility and 10 mw solar farms depending on the market conditions. The good news is enquiries for captive solar plants from poultry, cement, agriculture and other segments are on the rise.

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