Faced with raw material and labor shortages, solar manufacturers have stressed the need to find alternative supply chains and to push automation and internet of things applications on the factory floor to keep production running.
India imported solar cells and modules worth $1.3 billion from China in FY2019-20. Domestic manufacturers have demanded a level playing field to compete against cheaper imports.
Indian solar manufacturers have cried foul over a system which exempts imported panels from yet-to-be-announced tax regimes but offers no such protection to domestic products.
At the World Trade Organization’s Safeguard Committee Meeting, the European Union and Japan found that India’s safeguard measures on imported solar PV cells and modules need further investigation, and must be more conclusive. India replied, saying it has nothing to add.
India is planning to impose a safeguard duty this year to protect its domestic solar manufacturing sector. Many in the industry earnestly believe that if such duties were to be imposed, then a slowing down in market growth would be inevitable. However, the Indian Solar Manufacturers Association (ISMA) believes this will not be the case. Either way, this duty has created unwanted uncertainty in the market.
The Solar Energy Corporation of India has postponed the 2 GW PV project tender until further notice. The company has also extended the deadline for expression of interest for setting up the solar manufacturing plant in India until January 29.
India has proposed to impose safeguard duty at the rate of 70% for a period of 200 days on imported cells and modules coming from China PR and Malaysia.
Gyanesh Chaudhary, General Secretary of All India Solar Industries Association, speaks to pv magazine ahead of an ongoing tax hearing regarding imported solar cells and modules. On behalf of AISIA, he recommended solutions that should be considered for the benefit of local manufacturers.
All India Solar Industries Association (AISIA) has urged the government to remove the Goods and Services Tax (GST) from the balance of systems for solar equipment. The association said that components like inverters, cables and transformers under GST are charged at 5-8%. Previously, they were charged 2% central sales tax and no excise duty.
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