70% duty on solar imports: How serious is China dominance in Indian market?
The recent suggestion of the Directorate General of Safeguards Duty (DGS) to impose a 70 per cent duty on import of Chinese solar equipment might make power costlier, feels the industry.Chinese solar import has grown 643 per cent from 2014-15. However, this has also helped the fall of solar power rates to a recent record low of Rs 2.43 a unit, due to cheap solar power panels, mostly from China.
Power developers fear the duty, if imposed, would lead to escalation in rates.The DGS in its preliminary report investigating dumping of solar cells (whether or not assembled in modules or panels), has suggested a duty of 70 per cent on import from China and Malaysia. It has identified ‘serious injury’ to the domestic industry from the rising import and declining prices of Chinese solar panels.