The announcement by the Department of Trade and Industry of the Directorate General of Trade Remedies (DGTR) to launch an investigation into the dumping of imported solar cells imported from China, Vietnam and Thailand was made yesterday. This step, while following the right procedure as one might have hoped, leads to many questions about its validity. Probably the only issue that could be the end of the Security Guard Duty (SGD), which is set to end in July this year, after completing a one-year extension in its first year starting in July 2018. next, the period between July and the end of March 2022 was thought to be a time of charge, which may have caused the current investigation to maintain the status quo or increase protection.

However, obviously, amidst the ‘booking’ of CPSU’s solar systems, PM KUSUM schemes, exports and subsidized roof schemes, we have seen a need beyond the supply of home solar products in recent months. Or projects are postponed for quality issues too. The enforcement action can only create a high price gap at a time when prices are already under high pressure. Ad-hoc operations and protection from limited importation have also fraudulently failed to address the root of the problem. The dominance of Chinese firms throughout the series of solar prices, and the failure of the foundation of domestic production to emerge to challenge it.

The DGTR investigation is based on a petition filed by the Indian Solar Manufacturers Association (ISMA), an industrial organization that has had previous complaints with it. The Defense Service (SGD) was the first to protect, since 2018. ISMA filed a petition on behalf of the common complaint, Mundra Solar PV (Adani) – a unit in the Special Economic Zone; Jupiter Solar Power, unit in Domestic Tariff Area (DTA); and Jupiter International Limited (DTA).

Jupiter International and Jupiter Solar Power have been considered major players in the DTA area, while DGTR estimates that the production of two DTA units accounts for a ‘significant portion’ of India’s total solar cell production.

Significant allegations are also being investigated, that imported solar cells from China, Vietnam and Thailand are ‘discarded’ in India causing property damage in the domestic industry. A case that qualifies them for the task of fighting rejection.

The investigation will cover the period from July 2019 to December 2020 (18 months). The injury period under investigation will include 2016-17, 2017-18, 2018-19, 2019-20, and the investigation period.

The DGTR notice also seeks positive evidence of price reductions, price pressures, and the effect of price depression on the domestic industry.

The solar sector has been plagued by allegations of suspicion, and the government’s efforts to balance domestic industry support with high domestic prices. Solar production has finally reached PLI plans as a focus on critical production this year as well.

Source: Saur Energy

Click to read the probe notice.