Lok Sabha Question No. 1662 (UNSTARRED), answered on 2018-12-20
Subject: Import of Solar Cell
Ministry: NEW AND RENEWABLE ENERGY
Asked by: J. JAYASINGH THIYAGARAJ NATTERJEE

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY LOK SABHA UNSTARRED QUESTION NO-1662

TO BE ANSWERED ON-20.12.2018

## IMPORT OF SOLAR CELL

## 1662. SHRI J.J.T. NATTERJEE

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

(a)  whether  the  Government  has  imposed  safeguard  duty  of  25%  on  import  of  solar  cells (whether or not assembled in modules or panels) from China and Malaysia;

(b) if so, the details thereof;

(c) whether this move is aimed at helping domestic solar cell manufacturing sector;

(d) if so, the details thereof;

(e)    whether  this  will  affect  existing  projects  dependent  on  cheap  imports  and  hike  solar power tariffs in India; and

(f) if so, the details thereof and the steps taken by the Government to address the situation?

## ANSWER

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

(a) & (b) Based on the final findings of 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.

(c)  &  (d)  Safeguard  duty  is  imposed  by  the  Central  Government,  on  an  article,  after conducting such enquiry as it deems fit, if it is satisfied that the said article is imported into India in such increased quantities and under such conditions so as to cause or threatening to cause  serious  injury  to  domestic  industry.  The  Directorate  General  of  Trade  Remedies (DGTR), in the investigations concerning imposition of Safeguard duty on import of solar cells and panels, has also concluded that: 'Imposition of safeguard duty in this case would be in  public  interest  because  it  will  prevent  complete  erosion  of  manufacturing  base  of  Solar industry in the country which is upcoming and holds promise for a stronger manufacturing base in the country in future'.

(e)  &  (f)  There  may  be  some  impact  on  the Solar  Power  Developers  due  to  imposition  of safeguard  duty  on  the  solar  cells/  modules.  However,  the  'Guidelines  for  Tariff  Based Competitive  Bidding  Process  for  Procurement  of  Power  from  Grid  Connected  Solar  PV Power Projects' notified on 3rd August, 2017, provides that 'In the event a Change in Law results  in  any  adverse  financial  loss/  gain  to  the  Solar  Power  Generator  then,  in  order  to ensure that the Solar Power Generator is placed in the same financial position as it would have  been  had  it  not  been  for  the  occurrence  of  the  Change  in  Law,  the  Solar  Power Generator/ Procurer shall be entitled to compensation by the other party'.

Further,  Ministry  of  Power,  on  27.08.2018  has  issued  directions  to  the  Central  Electricity Regulatory  Commission(CERC)  under  section  107  of  the  Electricity  Act,  2003,  inter-alia, stating that:

i.  Any  change  in  domestic  duties,  levies,  cess  and  taxes  imposed  by  Central  Government, State  Governments/Union  Territories  or  by  any  Government  instrumentality  leading  to corresponding  changes  in  the  cost,  may  be  treated  as  "Change  in  Law"  and  may  unless provided otherwise in the PPA, be allowed as pass through.

ii. The order for pass through giving the calculation for per unit impact will be issued within 30 days of filing of petition.

*****