Imported solar cells to get costlier as government likely to impose a steep dumping duty.

NEW DELHI: Government is likely to impose a steep dumping duty on solar gear imports, a move that could deal a massive blow to solar power producers in India.

The commerce ministry has identified a dumping margin range of 50-60% from the United States and 100-110% from China, which is the largest exporter of solar cells worldwide. The ministry has identified 58 manufacturers, mostly from China, followed by Taiwan, Malaysia and the US as the subject countries involved in the case of dumping filed by a group of domestic manufacturers two years ago.

"The dumped imports of the subject goods from the subject countries have increased in absolute terms as also in relation to production and consumption of the subject goods in India. The imports of the subject goods from the subject countries are undercutting the prices of domestic industry. Further, the dumped imports have caused price underselling, price suppression as well as price depression effects," the ministry said in a statement.

However, the domestic manufacturers are looking forward to a level playing field following the imposition of duty.

"Revival of manufacturing in India is vital to meeting the new government's objectives around development. Here is an opportunity to send out a strong message by revitalising Indian solar manufacturing," said Vivek Chaturvedi, chief marketing officer, Moser Baer Solar.

The commerce department has determined a dumping margin of 60-70% for sampled manufacturers from China and 100-110% for nonsampled, indicating an unorganised market of imports flowing in from China into India. The dumping margin for First Solar, a USbased solar cell manufacturer, has been kept at 5-15% and for all other exporters at 40-50%. For Malaysia and Taiwan, the ministry determined the margin at 70% and 90%, respectively.

Source : economictimes.indiatimes.com