DGTR(Director General of Trade Remedies) had responded to a complaint from the Indian Solar Manufacturers Association (ISMA) in December by conducting its own investigation. The probe concluded that indigenously made solar cells and panels, which constituted just 10% of Indian solar projects in 2014-15, had fallen even further in subsequent years. Developers preferred Chinese and Malaysian solar equipment, as it was cheaper than that manufactured locally. India imports over 90% of its solar equipment from China.
Solar developers had been opposing strongly on the grounds that it would raise tariffs, as they would have no option but to pass on the extra charge to discoms and ultimately consumers. This in turn might slow down India’s ambitious solar programme which aims to have 100,000 MW of solar capacity by 2022. They noted that local manufacturers do not have sufficient capacity to meet their needs.
Imported solar modules are 8-10% cheaper than those made in India, making them vital for cheap renewable power — solar modules comprise about 60% of total project costs. About 88% of module requirements are met through imports.The parliamentary committee on commerce has recently said that some estimate a loss of nearly two lakh jobs as nearly half of the country’s domestic industry capacity will remain idle due to dumping of Chinese solar panels. India imported solar cells and modules worth around Rs 17,000 crore in FY18.
— Solar Power Developers Association (@spda_solar) August 1, 2018