Chinese equipment real threat to Indian solar manufacturers

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China is everywhere, be it tablet, smartphone, machinery or any other electronics related products. But now the Chinese are being recognised as a threat in the solar sector with their cheap solar cells and modules by the Indian government.

Friday, May 3, 2013: “Cheaper solar equipment from China are a threat for Indian manufacturers, including Bharat Heavy Electricals Ltd, the Minister of Heavy Industries and Public Enterprises,” Praful Patel informed Lok Sabha today.

The Minister also said that the Chinese dominate the manufacturing segment in the world market, and have a share of about 57 per cent of crystalline technology segment, according to an estimate. “This is affecting photovoltaic (PV) manufacturers worldwide,” he said.

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It is estimated that the global production capacity for solar power items/equipment exceeds the actual global demand. This over producing and adding to it, the cheaper Chinese manufactured cells and modules is a threat for Indian solar equipment manufacturers.

To ensure the local manufacturers are safeguarded, the Government, under the Phase-I of the Jawaharlal Nehru National Solar Mission has specified that the developers using crystalline silicon technology are required to procure cells and modules locally.

In addition to this, customs duty exemption has been extended on goods required for manufacturing of solar cell and modules. Other than this, the entire machinery item required for setting up the solar power generation project or facility have been fully exempted from excise duty, which is subject to certain conditions. Also, these goods are already benefiting from customs duty of five per cent ad valorem.

Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine

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