{"id":21830,"date":"2019-05-15T08:03:52","date_gmt":"2019-05-15T02:33:52","guid":{"rendered":"http:\/\/www.greenworldinvestor.com\/?p=21830"},"modified":"2019-05-15T08:03:52","modified_gmt":"2019-05-15T02:33:52","slug":"safeguard-duty-fails-to-safeguard-indian-solar-cell-manufacturers","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2019\/05\/15\/safeguard-duty-fails-to-safeguard-indian-solar-cell-manufacturers\/","title":{"rendered":"Safeguard Duty Fails to "Safeguard" Indian Solar Cell Manufacturers"},"content":{"rendered":"

Impact of Safeguard Duty<\/h2>\n

Much hasn’t changed for the local solar cell and panel manufacturers even\u00a0in the\u00a0nine months\u00a0after the imposition of safeguard duty<\/a><\/em> on imported solar cells and panels in India. About 90% of panels used in Indian solar projects are imported because they are cheaper.\u00a0There were many reasons that led to an increase in Chinese imports into India such as\u00a0other countries taxing China\u2019s solar imports, lack of adequate advanced\u00a0technological manufacturing capacities in India, WTO nullifying the domestic content requirement in India and falling import prices in India.<\/p>\n

However, a safeguard duty of 25%<\/strong><\/a> could not do much to improve the state of our local cell manufacturers. Solar cell manufacturers from across the country have been complaining. A few complain about a poor order book, while others say their factories are still shut.\u00a0Solar cell manufacturers also said that their products remained more expensive even\u00a0with the duty as the cost of an imported solar cell (with duty) is 12 cents\/ watt, whereas input cost for an Indian solar cell manufacturer stands at 13.5 cents\/ watt.\u00a0Manufacturers are dissatisfied with the low rate\u00a0and short span of duty imposition.<\/p>\n

\"solar<\/a><\/p>\n

\u201cIf you require a certain price to break even, raising the competition\u2019s cost to half of that doesn\u2019t help,\u201d said Dhruv Sharma, chief executive of cell manufacturing company Jupiter Solar. \u201cWe are operating at 40% capacity. If things don\u2019t improve soon, we will definitely be heading to the National Company Law Tribunal (declaring bankruptcy).\u201d<\/p>\n

Source: Economic Times<\/a><\/em><\/p><\/blockquote>\n

The picture is a little brighter for solar panel manufacturers in India<\/a><\/strong> with\u00a0production increasing to 650-700 MW per quarter after duty imposition, as opposed to the earlier production of 500 MW. The reasons for this improvement are that locally manufactured modules are now cost-competitive (25-27 cents\/ watt) with the imported Chinese modules.\u00a0The exchange rate volatility in the global market has also led to developers\u00a0preferring Indian made panels. However, module makers also\u00a0demand duty imposition for a longer time period so as to further improve their profitability. Moreover, the declining duties will compel developers to buy panels closer to the project commissioning date when duties would fall to 15%.<\/p>\n

<\/div>\n

\n","protected":false},"excerpt":{"rendered":"

Impact of Safeguard Duty Much hasn’t changed for the local solar cell and panel manufacturers even\u00a0in the\u00a0nine months\u00a0after the imposition of safeguard duty on imported solar [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":16748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","content-type":"","footnotes":""},"categories":[30,45,52],"tags":[2691,4511,4518,4745,4948],"class_list":["post-21830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india-green-stocks-greeninvest","category-solar-renewable-energy-greeninvest","category-solar-panels","tag-impact-of-safeguard-duty-solar-india","tag-safeguard-duty-fails-to-safeguard-indian-solar-cell-manufacturers","tag-safeguard-duty-solar-india","tag-solar-cell-manufacturers-in-india","tag-solar-panel-manufacturers-in-india"],"_links":{"self":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/21830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/comments?post=21830"}],"version-history":[{"count":0,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/21830\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media\/16748"}],"wp:attachment":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media?parent=21830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/categories?post=21830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/tags?post=21830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}