Lok Sabha Question No. 3682 (UNSTARRED), answered on 2019-01-03
Subject: Manufacturing of Domestic Solar Equipment
Ministry: NEW AND RENEWABLE ENERGY
Asked by: NALIN KUMAR KATEEL, DODDAALAHALLI KEMPEGOWDA SURESH

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY LOK SABHA UNSTARRED QUESTION NO-3682

TO BE ANSWERED ON-03.01.2019

## MANUFACTURING OF DOMESTIC SOLAR EQUIPMENT

3682. SHRI NALIN KUMAR KATEEL SHRI D.K. SURESH Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:-

(a) whether the Government is aware that there is severe threat to domestic solar equipment manufacturing industry, if so, the details thereof;

(b) whether the Union Government is also aware that import of solar power equipment from countries  like  China  is  causing  serious  injury  to  the  domestic  industry,  if  so,  the  details thereof;

(c) whether the Government has taken any measures to counter the threats to domestic solar equipment manufacturing industries; and

(d) if so, the details thereof and the response of the Government in this regard?

## ANSWER

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

- (a) & (b) The Directorate General of Trade Remedies (DGTR) in its final findings dated 16th July,  2018,  on  'Safeguard  investigation  concerning  imports  of  Solar  Cells  whether  or  not assembled  in  modules  or  panels  into  India,  has  concluded  that  increased  imports  of  Solar Cells whether or not assembled in modules or panels into India, have caused serious injury and also threaten to cause serious injury to the domestic producers in India.
- (c) & (d) The Government has taken following steps to counter the threats to domestic solar equipment manufacturing industry and support it:
- I.  Based  on  the  final  findings  of  the  Directorate  General  of  Trade  Remedies  (DGTR),  the Government,  through  notification  no.  01/2018-Customs  (SG)  dated  30th  July,  2018,  have imposed Safeguard  duty  on  import  of  solar  cells  whether  or  not  assembled  in  modules  or panels, as follows:
- i. Twenty  five  percent,  ad  valorem  minus  anti-dumping  duty  payable,  if  any,  when imported during the period from 30th July, 2018 to 29th July, 2019 (both days inclusive);
- ii. Twenty percent, ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30th July, 2019 to 29th January, 2020 (both days inclusive);

iii. Fifteen percent, ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30th January, 2020 to 29th July, 2020 (both days inclusive); Nothing contained in the notification dated 30th July, 2018, mentioned above shall apply to imports of subject goods from countries notified as developing countries vide notification no. 19/2016-Customs (N.T.) dated 5th February, 2016, except China PR, and Malaysia.

II. The Ministry of New & Renewable Energy (MNRE) vide its O.M. No. 146/57/2018-P&C dated 11.12.2018 regarding 'Implementation of Public Procurement (Preference to Make in India) Order for Renewable Energy Sector' has stipulated that apart from civil construction, preference  shall  be  provided  in  Central  Ministries/Departments  and  Central  PSUs  to domestically manufactured/produced products such as solar PV  modules and other components  such  as  inverters,  etc.  for  grid  connected  solar  power  projects.  Minimum Percentage  of  local  content  required  is  100%  in  case  of  solar  modules  and  40%  for  other components such as inverters etc.

III.  Domestic  manufacturing  of  solar  cells  and  panels  in  India  is  being  supported  by  the Government of India through Modified Special Incentive Package Scheme (M-SIPS) of the Ministry of Electronics & Information Technology. The scheme, inter alia, provides for:

i. 20-25%  subsidy  for  investments  in capital expenditure for setting up of the manufacturing facility.

ii. Reimbursement of counter vailing  Duty  (CVD)/  Excise Duty  for  capital  equipment for the units outside Special Economic Zone (SEZ).

IV.  Further,  the  solar  power  projects  being  implemented  by  the  Central  Public  Sector Undertakings (CPSUs) with financial support from the Government and those rooftop solar projects which are implemented with central financial assistance are mandated to source their requirement  of  solar  cells  &  panels  from  domestic  sources  as  per  extant  Guidelines,  in  a World Trade Organization (WTO) compliant manner.

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