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NEW DELHI: A surge in duty free solar imports from southeast Asian countries that have free trade agreements (FTAs) with India, have raised suspicion of China re-routing supplies to escape customs duty, but the government is unlikely to slap safeguard duty.
Available data shows the share of solar modules from FTA countries rising to 48% of total imports in the first two months of the current fiscal against 52% in 2022-23. But officials said safeguard duty is not feasible because of FTA and could also delay projects as domestic supplies lag demand. India began charging basic customs duty of 40% on solar modules and 25% on cells from April last year to ensure level-playing field for domestic manufacturing. But a s a relief to projects bi d out before March 9, 2021, when the Centre announced its intention to impose BCD, completion timelines were extended.
AUS commerce department report had in December said cells and modules coming from Vietnam, Cambodia, Malaysia and Thailand are made using components from China and exported to circumvent anti-dumping and countervailing duties imposed by Washington. India is facing a similar situation, domestic manufacturers said. “India has to rapidly expand domestic manufacturing base as 220-280 GW solar capacity is to be added in the next few years,” North India Module Manufacturer Association president Manish Gupta said to underline need for protection.
Available data shows the share of solar modules from FTA countries rising to 48% of total imports in the first two months of the current fiscal against 52% in 2022-23. But officials said safeguard duty is not feasible because of FTA and could also delay projects as domestic supplies lag demand. India began charging basic customs duty of 40% on solar modules and 25% on cells from April last year to ensure level-playing field for domestic manufacturing. But a s a relief to projects bi d out before March 9, 2021, when the Centre announced its intention to impose BCD, completion timelines were extended.
AUS commerce department report had in December said cells and modules coming from Vietnam, Cambodia, Malaysia and Thailand are made using components from China and exported to circumvent anti-dumping and countervailing duties imposed by Washington. India is facing a similar situation, domestic manufacturers said. “India has to rapidly expand domestic manufacturing base as 220-280 GW solar capacity is to be added in the next few years,” North India Module Manufacturer Association president Manish Gupta said to underline need for protection.
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