7 hours Ago By Sanjay Dutta
File photo NEW DELHI: Amid US president Donald Trump’s tariff war against Beijing, the call for duty protection against Chinese dumping is getting louder from domestic producers of polysilicon , ingot and wafers — making up the solar industry ’s upstream segment that provides the building blocks for solar cells and panels. At a meeting with renewable energy ministry officials on March 1, industry representatives pressed for safeguard duty (SGD) on Chinese supplies of these basic inputs, pointing out how such a levy and other incentives had helped India become self-sufficient in module and panel manufacturing. A presentation made by the Indian Solar Manufaturers Association underlined the urgency of steps to boost upstream manufacturing as Chinese dumping could undercut investments being made to expand capacity in line with the government’s solar ambitions.
China customs data pegs wafer exports alone to India at $318 million in 2023, marking a surge of 91% over the previous year. Cells and modules from China, Taiwan and Malaysia currently attract 20% SGD, which was first imposed at 25% in July 2018. In July 2019, it was reduced to 20% and further to 15% from January 2020 to July 2020, only to be reinstated at 20% in July 2024.
The upstream players also sought protection similar to ALMMS (approved list of models and manufacturers) scheme for cell and module manufacturers mandating locally produced panels in public projects but left polysilicon, ingot and wafer makers at the mercy of Chinese imports. The presentation called for reorientation of government focus towards the capital and energy intensive upstream manufacturing with Import duty exemption on capital goods and raw material for producing polysilicon, ingot and wafers. The wishlist for fiscal incentives included a fresh capital subsidy programme, priority lending and interest subvention and creation of dedicated funds.
In addition, other accelerated depreciation on plant and machinery was also suggested..
