Lok Sabha Question No. 247 (STARRED), answered on 2017-03-20
Subject: Solar Imports from China
Ministry: COMMERCE AND INDUSTRY
Asked by: KAMAL NATH, JYOTIRADITYA MADHAVRAO SCINDIA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA STARRED QUESTION NO. 247

## TO BE ANSWERED ON 20 th  MARCH, 2017

## SOLAR IMPORTS FROM CHINA

## *247. SHRI KAMAL NATH: SHRI JYOTIRADITYA M. SCINDIA:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the total quantity and value of solar imports from China during the last three years and the current year;
- (b) whether  the  cheap  Chinese  imports  are  making  it  increasingly  attractive  for  solar manufacturers to choose imports over manufacturing the parts themselves which is hurting Government's 'Make-in-India' mission;
- (c) if so, the reaction of the Government thereto;
- (d) whether  the  Government  has  discussed  the  matter  with  the  indigenous  solar manufacturers to look into their problems and to minimize imports from China; and
- (e) if  so,  the  details  thereof  along  with  the  corrective  steps  taken  or  proposed  to  be taken by the Government in this regard?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- a) to  e):  A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 247   FOR ANSWER ON 20 th  MARCH, 2017 REGARDING ' SOLAR IMPORTS FROM CHINA '

- (a) : Quantity and value of imports of solar cell under Exim Code 85414011 ( solar cells/photovoltaic cells whether or  not assembled in module/panel ) and 85414019 (other Photocells) from  China and total imports value wise during the last three years and the current year is as under:

## Import of solar cells/photovoltaic cells and other photocells from China

|          | 85414011 ( solar cells/ photovoltaic cells)   | 85414011 ( solar cells/ photovoltaic cells)   | 85414011 ( solar cells/ photovoltaic cells)   | 85414019 (other photocells)   | 85414019 (other photocells)   | 85414019 (other photocells)          |
|----------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-------------------------------|-------------------------------|--------------------------------------|
| Year     | Qty. (in million Nos)                         | Val (US Million $)                            | India's Total Imports (US Million $)          | Qty. (in million Nos)         | Val (US Million $)            | India's Total Imports (US Million $) |
| 2013-14  | 100.43                                        | 596.75                                        | 711.15                                        | 2.19                          | 31.55                         | 39.72                                |
| 2014-15  | 113.56                                        | 603.34                                        | 820.95                                        | 3.12                          | 43.39                         | 88.78                                |
| 2015-16  | 163.02                                        | 1960.26                                       | 2344.56                                       | 4.46                          | 49.96                         | 64.58                                |
| 2016-17* | 181.52                                        | 1614.79                                       | 1842.18                                       | 7.45                          | 41.71                         | 45.40                                |

- (b) to (c): India does not have enough manufacturing capacity currently for solar cells and modules to cover full demand. We are dependent on imports and China is our biggest supplier of solar cells and modules; and in some cases the prices are much lower than what is being offered by domestic manufacturers.

To reduce our dependence on imports, the Government is promoting Solar PV manufacturing through  National  Solar  Mission  by  taking  several  measures  including  fiscal  and  promotional incentives such as capital subsidy, tax holiday on the earnings for 10 years, generation based incentive, accelerated depreciation, viability gap funding (VGF), financing solar rooftop systems as  part  of  home  loan,  concessional  excise  and  custom  duties,  preferential  tariff  for  power generation from renewables, and Foreign Direct Investment (FDI) up to 100 per cent under the automatic route etc.

This  apart,  the  Government  has  been  supporting  solar  manufacturing  by  way  of  various mechanisms  such  as  Modified  Special  Incentive  Package  Scheme  (M-SIPS)  of  Ministry  of Electronics & Information Technology (MeitY).

Further,  Ministry  of  New &  Renewable Energy (MNRE) has also been promoting various Solar applications  like  lighting  systems,  solar  lanterns,  solar  cookers,  solar  geysers  and  solar  pumps through  Off  Grid  and  Decentralised  Solar  Applications  Programme  with  Central  Financial Assistance  (CFA).  This  has  also  helped  in  facilitation  of  domestic  manufacturing  of  above products. Lead Acid batteries which are the main source of storage in solar are manufactured in the country.

(d)  to  (e):  While  the  Government  is  concerned  about  domestic  manufacturers,  our  bigger concern is the price of power which is consumed by large number of consumers. Government is balancing  both  these  categories  by  allowing  imports  to  increase  the  generating  capacity  and providing support to domestic manufactures through a provision of reserving some capacities for domestic cells and modules which gives assured market to domestic manufacturers.

*****