Lok Sabha Question No. 397 (UNSTARRED), answered on 2018-07-19
Subject: Import of Solar Panels
Ministry: NEW AND RENEWABLE ENERGY
Asked by: BALASUBRAMANIAM SENGUTTUVAN

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-397

TO BE ANSWERED ON-19.07.2018

## IMPORT OF SOLAR PANELS

397. SHRI B. SENGUTTUVAN:

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:-

- (a)  whether  almost 90 per cent of the domestic demand for solar panels is met by imports from other countries and if so, the details thereof;
- (b) whether the cheap and sub-standard solar panels and modules have been dumped in the Indian market by some countries thereby ruining the domestic production and capability for generation of more power and if so, the details thereof;
- (c) the details of the quantum and volume of imports of solar cells and modules from China during the past five years, year-wise;
- (d)  whether  the  Government  proposes  to  increase  the  duty  on  the  solar  modules  and  cells imported  from other countries, particularly from China, with a view to protect the domestic manufacturers and if so, the details thereof; and
- (e) whether such imposition of import duty would affect the sunrise industries in the country and if so, the details thereof?

## ANSWER

THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER (I/C) (SHRI R.K. SINGH)

- (a)  As  per  the  Report  dated  16 th July,  2018  from  Directorate  General  of  Trade  Remedies (DGTR),  the  quantum  of  imported  solar  cells/  modules  is  around  90%.  The  year-wise percentage calculated from this report is as follows:
- (b) DGTR in its reports dated 16.07.2018 referred above,  has noted that imports of the solar cells/ modules PUC are taking place at very low prices resulting in drop in sales realisation of domestic industry  thereby  hampering  the  domestic  industry's  ability  to  compete  and  make and sell  the  solar  cells/  modules.  However,  this  report  has  not  commented  on  the  issue  of dumping.
- (c) The details of the solar cells/photovoltaic cells whether or not assembled in module/panel, imported from China in last five years is as follows:

| Year                     | Imports (MW)   | Indian Production [excluding Special Economic Zone (SEZ)] (MW)   | Total of (Imports + Indian Production) (MW)   | Imports as% Total   |
|--------------------------|----------------|------------------------------------------------------------------|-----------------------------------------------|---------------------|
| (a)                      | (b)            | (c)                                                              | d=(b)+(c)                                     | (e)                 |
| 2014-15                  | 1275           | 170                                                              | 1445                                          | 88.24               |
| 2015-16                  | 4186           | 206                                                              | 4392                                          | 95.31               |
| 2016-17                  | 6375           | 587                                                              | 6962                                          | 91.57               |
| 2017-18 (till Sep. 2017) | 4917           | 421                                                              | 5338                                          | 92.11               |
| 2017-18 (annualized)     | 9833           | 842                                                              | 10675                                         | 92.11               |

| Year    |   Value in Million US$ |
|---------|------------------------|
| 2013-14 |                 596.73 |
| 2014-15 |                 603.34 |
| 2015-16 |                1960.26 |
| 2016-17 |                2817.34 |
| 2017-18 |                3418.96 |

Source: Data from Export-Import Data Bank, Department of Commerce, Ministry of Commerce & Industry; Website: http://commerce-app.gov.in/eidb/

- (d)  DGTR in its  above  referred  Report  dated  16.07.2018,  has  recommended  imposition  of safeguard  duty  on  imports  of  solar  cells/  modules  into  India  in  terms  of  Rule  12  of  the Customs Tariff (Identification And Assessment of Safeguard Duty) Rules'97, for a period of two years as follows:
- (e)  DGTR in its above referred Report dated 16.07.2018, has noted that levy of Safeguard duty would not only lead to mitigation of serious injury to the domestic solar cell/ module manufacturers  but  would  also  improve  viability  of  the  upstream  and  downstream  industry associated in the value chain of the manufacturing of solar cells /modules.

| Year                             | Safeguard duty recommended    |
|----------------------------------|-------------------------------|
| First Year                       | Safeguard duty@25% ad valorem |
| Second Year (for first 6 months) | Safeguard duty@20% ad valorem |
| Second Year (for next 6 months)  | Safeguard duty@15% ad valorem |

*****