Imposition of anti dumping duty on import of solar cells/ modules will increase project cost: ASSOCHAM
Implementation of the power purchase agreements (PPAs) signed recently for 2200 MW of solar power under different schemes of the central and state governments have come to standstill after the anti-dumping duty recommended by the Directorate General of Anti-Dumping and Allied Duties (DGAD) on import of solar cells/modules from China, US, Malaysia and Taiwan from US $ 0.11 to $ 0.81.
In a note submitted to the Finance Ministry by ASSOCHAM, it has stated if the anti-dumping duty was imposed, the project cost will increase by 18.83% on minimum side, while it may increase by 75% on maximum side.
The resultant corresponding revised tariff will be INR 9.1/kWh and INR 13.51/kWh respectively against INR 7.72. /KWHr in CERC award.
ASSOCHAM Secretary General D.S. Rawat said, if we consider another 17,000 MW to be installed to achieve, the proposed anti dumping duty implies increase in total project costs by almost Rs. 22,120 crore to Rs. 87,500 crore. This would also lead to similar cost hikes for the distribution companies or the government will have to bear this increase in cost of generation of power. This increase in cost of generation of power would ultimately imply increase in the cost of power to the public at large.
The proposed anti dumping duty (ADD) would increase costs all around, thus negating all the efforts made so far. Generation cost of power by developers is a pass through activity and ultimate impact comes to the power distribution companies (mostly govt. owned) and thereby on the energy consumers.
Source: Business Standard