India May Impose Anti-dumping Duties on Solar Modules From US, China, Taiwan, Malaysia

Various ministries of the Indian government are considering to impose anti-dumping duties on solar photovoltaic modules imported from the US, China, Malaysia, and Taiwan. The Commerce Ministry has undertaken a preliminary inquiry into the impact of large-scale import of solar modules on the domestic manufacturers.

The Indian solar module manufacturers have been lobbying for anti-dumping duties on imported equipment for several months now. Some of the major manufacturers like Moser Baer, Indosolar, and Lanco Solar have been hit hard by the surge of imported solar power equipment in the country. Some of these companies have been forced to shut down manufacturing while other are facing losses worth millions of dollars.

To protect the domestic manufacturers the Indian government had proposed to increase restrictions on the use of imported equipment in the second phase of the ambitious National Solar Mission which aims to add thousands of megawatts of solar power capacity.

Following this proposal, the US filed a request with the World Trade Organisation (WTO) to intervene and protect the interests of the American manufacturers. According to some estimates, US-based First Solar commands a share of 20-30% of the Indian solar photovoltaic (PV) installed capacity. First Solar and other American manufacturers have been able to grab a substantial share in the Indian solar PV market as US Export-Import Bank has been among the largest debt financier for solar power projects under the national-level as well as state-level solar power policies.

The Indian government subsequently challenged the American request at WTO but was unsuccessful. US-based industry group Solar Energy Industries Association (SEIA) has also urged the Indian government to remove restrictions on imported solar power equipment.