Without violating WTO’s trade rules a new solar scheme to boost local manufacturing has been drafted. The scheme is in its final stage of approval and will help local industry withstand the onslaught of cheap imports.
The local industry has suffered because WTO, acting on a US complaint, ruled that India had violated trade rules by mandating use of locally made cells and modules in its national solar mission.
As part of this 12 gigawatts, Rs 8,000-crore scheme, Central government’s public sector undertakings will call for tenders for setting up power projects, and the electricity generated through these will be used for their own consumption.
The government can mandate use of locally manufactured components as part of the scheme since the power is for the government’s own consumption.
“It will help bridge the difference between domestic manufacturing capacity in India and our imports.”
The scheme will have an implementation period of four years, and by 2022, it will ensure a minimum manufacturing capacity of 3 GW of solar cells per year, which is the current size of the domestic solar cell market in India.
If approved, it will bring relief to the domestic solar manufacturers who, on account of injury from imports of solar components from China, Malaysia and Taiwan, are lobbying for a safeguards duty on these imports.
Reference- ET, Indian Power Trading