With Safeguard Duty Expiration A Day Away, Solar Bodies in a Huddle For Method Forward

• The expiry of the Safeguard Duty was recognized, and yet, there is zero clearness on its extension or any other ways to maintain status once it ends tomorrow.
• For the federal government, a zero duty period appropriate upto April 2022, when the new duty framework kicks in, seems like an unlikely choice. Expect an impromptu solution soon for residential manufacturers.

With the Safeguard Duty (SGD) on solar modules expiring tomorrow, there is predictable anxiousness among Indian module manufacturers on the future after the duty expires.

Presently, there is a recurring examination by the Directorate General of Trade Remedies versus alleged Chinese dumping of modules, which has got postponed due to a court treatment. Thus, a fast wrap up of the DGTR enquiry in their favour appears to be one of the most likely result for additional protection till April next year, when the truly high duties and also tariffs work. A 40 percent standard personalizeds duty on modules, as well as 25 percent on cells has actually been validated by the MNRE on imports from April 1, 2022.

The Safeguard Duty expiry, which was a truth understood for 2 years, was perhaps looked for to be managed by the current DGTR examination as well as the hope that it would finish with a revengeful tariffs once more, to make up for the absense of SGD. The hold-up right here appears to have actually queered the picture.

For AISIA (All India Solar Industries association), ISMA (Indian Solar Manufacturers Association) as well as NIMMA (North India Module Manufacturer Association), three of the bigger ordered solar manufacturers bodies in the nation, this is a crisis big sufficient to require a meeting with the MNRE secretary, which they got yesterday, and also an adhere to on with the power priest, MR R.K. Singh today.

They are up against designer companies that have actually made a case for a duty complimentary duration in between currently as well as April, to allow them to recoup losses caused by covid delays along with the unexpected boost in module rates from China along with India that comply with, in the past couple of months. These developers have actually contended that with costs having risen by 10-15%, projects establish for conclusion between currently as well as the end of 2022 face a tough scenario with costs being more than those projected at the time of bidding process.

Residential manufacturers are dead against this, as they see any prolonged opportunity as a reason to purchase for upto two years, which would 'eliminate' both existing and also upcoming capacities according to them. the one thing they are certain of is that come what may, expense of Chinese imports would be much less than Indian made modules. Resulting in the danger to thousands of jobs in the market.

As a remedy, they have proposed prolonging the Approved Checklist of Models and Manufacturers (ALMM) to more tendered projects, advancing the BCD date or expanding the secure duty of course. Certainly, any kind of step will need to bear in mind the risk of litigation because of the lengthy list of postponed projects that might cite a modification in legislation occasion, or even discoms that could require lower tariffs on the other side.

However, we understand that any extension of the SGD can just happen at a reduced rate, although that price could be just a shade under existing rate also. Possibly the best way out in the meantime.

What might work in the manufacturers favour is that key designers like the Adani Group, Renew Power, Azure Power are already into producing themselves, or intending to soon. Therefore programmer resistance is likely to be less than usual to safety moves by the federal government.

Interestingly, the Power preacher has taken place record to say that the federal government will make use of both tariff and non tariff obstacles (BIS certification, ALMM list) to guarantee domestic production controls, specifically for all projects granted post April this year. The expiration of the SGD tomorrow is the initial real examination of that assertion.