Friday, September 12, 2014: Commerce Ministry’s detailed examination points out that the Finance Ministry didn’t give notice about its suggested anti-dumping duty on imports of solar panels form four countries, including U.S. and China. Because of which India’s chance for cutting off these restrictive duties aimed at protecting the domestic industries has lapsed.
State Minister for Commerce and Industry (Independent Charge), Nirmala Sitharaman on Wednesday, while addressing a press conference on 100 days of Modi Government, said, “There was no notification. We allowed it to lapse.”
Finance Ministry had a fixed timeframe of three months for publishing the Commerce Ministry’s quasi-judicial ruling. After 3 years of investigation, the Commerce Ministry had projected in May to the Finance Ministry about the restricted anti-dumping duties of $0.11-0.81 per watt on solar cells imported from the U.S., China, Malaysia and Chinese Taipei.
The investigation revealed about the Indian solar panel manufacturers’ argument for the subsidies that US and Chinese competitors receive from their government allowing them to dump their product in India at framed low prices.
Power Minister Piyush Goyal and Road Transport and Highways Minister Nitin Gadkari were not satisfied by the Commerce Ministry’s recommendation. Goyal argued on the ground that domestic solar equipments are not sufficient to meet the targets for power generation from green energy sources.
During ACMA national conference Goyal said, “It was a catch 22 situation for our government, we had ambitious plans in the solar power sector. Imposition of anti-dumping duty will kill the solar mission. Imposition of any such duty would have led to escalation in the tariff from solar plants”
He said, “Imports were necessary as the domestic manufacturing had not scaled up to a level wherein it could provide the required number for the solar mission.”
“We ensured within the framework of WTO to provide adequate support to not only fulfil the current manufacturing potential but also plan for a five year significant ramp up from what they (domestic manufactures) have now.” he added.
