Domestic solar equipment makers running plants at 30% capacity; reforms, tariff safeguards needed – EQ Mag Pro
Industry physique All India Solar Industries Association (AISIA) has urged Power and New & Renewable Energy Minister R Okay Singh that structural safeguards and tariff-based obstacles are needed for home manufacturing to realize a foothold and set up itself. The physique highlighted that the (solar equipment) “home producers run their plants at 30 per cent capacities and incur big insufferable losses.”
In the letter shot off to Singh earlier this week, the physique said that “having been hopeful of a revival in the last decade and after surviving strong headwinds, we are passing through even more difficult times where our survival is at stake and without a robust local ‘Make in India’ Solar manufacturing, the security of India’s energy sector is in peril.”
It urged that for domestic manufacturing to realize a foothold & set up itself, it’s crucial that there are structural safeguards (ALMM-Approved List of Models and Manufacturers) and tariff-based obstacles (BCD/ SGD and so forth. primary customized responsibility, safeguard responsibility) apart from production-linked incentives for 4 to five years earlier than these are tapered-off steadily.
They identified that imports (of solar equipment) since April 2021 have been persistently over 800 MW/ month.
The imports for cumulative 11 months until February 2022 is 16 GW, far more than the speed of deployment and whole set up of 10 GW, which clearly indicated big stockpiling and speculative actions.
It additionally identified that over the past 6 months, from September 2021 to February 2022, 11.93 GW of module imports clearly confirmed that builders and merchants wish to sabotage home manufacturing.
About 3.21 GW import in February (2022) amplifies the plight of home producers, the physique mentioned.
It additionally identified that contemplating the weighted-average worth over the past 3 years, and 32 GW of imports, the full outflow of overseas change has been USD 10 billion, which is a large and avoidable value to pay for power safety.
The physique additionally gave causes for nonetheless persevering with imports from China and widening the commerce deficit with the neighbouring nation.
It said that import duties have been advisable for 40 per cent, which lastly was lowered to 25 per cent after which to zero leading to unbridled imports.
It additionally identified {that a} pass-through mechanism made it certain that no utility orders come to native producers.
The Approved List of Models and Manufacturers (ALMM) is the one structural non-tariff barrier to successfully rule out unscrupulous strikes like circumvented provides from Chinese producers by means of shadow manufacturing and export from ASEAN nations with whom India has FTA (free commerce settlement), it said.
“We request and pray for immediate and urgent intervention to thwart any such nefarious moves from those interested in dumping Chinese imports, leading to grave consequences, including most units turning to NPA (bad loans) and some may even nosedive to bankruptcy,” it submitted.
Solar module is the important thing & important factor for solar power era. Solar modules require varied smaller elements and inputs like solar cells, aluminum case, glass, again sheets which can be sourced from ancillary industries together with these in packaging & transportation are dependent for his or her enterprise survival.
The Indian Solar Equipment Manufacturing trade has been reeling underneath an onslaught from Chinese imports, leading to a number of closing retailers, getting underneath liquidation and survivors totally on the brink, it said.
Today, at stake are 200,000 jobs and 125 solar manufacturing items which have gotten Non-performing belongings (NPAs) and dealing a physique blow to the safety of India’s power sector, it informed the minister.
The physique urged for “expeditious action & prayed for no change in the schedule of implementation of revised ALMM order from April 1, 2022.”
Source: PTI
