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FAQs - Anti-dumping on solar panels in India

12 September 2018 (Update) - Safeguard duty of 25% decreasing to 15% over 2 years has been implemented after Supreme Court order. Bonds submitted will need to be honored by payment of safeguard duty.

20 July 2018 (Update) - Safeguard duty of 25% decreasing to 15% over 2 years has been announced. A stay on its implementation has been ordered by Odisha High Court until 20 Aug 2018.

6 March 2018 (Update) - Anti-dumping case for solar cells and modules has been withdrawn and will be filed again. In the meantime, decision on Safeguard duty is pending with the safeguard committee

Q) Who has filed the petition?

A) The petition for this investigation was submitted by Indian Solar Manufacturers Association (ISMA) on behalf of Indosolar, Websol and Jupiter Solar. Adani Solar could not be a part of the petition as it is also an importer of solar modules but it supports the petition from outside.

Q) Imports from which countries are being investigated?

A) Directorate General of Anti-Dumping and Allied Duties (DGAD) will probe import of solar cells and modules from China, Taiwan and Malaysia.

Q) What is the timeline for imposition of solar anti-dumping duties in India?

A) The investigation was initiated on 21 July 2017. Last date for affected parties to submit their response is 40 days from the beginning of the investigation, i.e., 30th August 2017. The investigation will continue for another 10 months, i.e., until 21st July 2018. At that time, DGAD can recommend anti-dumping duties and the Ministry of Finance can notify it.

Q) Who will benefit from anti-dumping duties?

A) India's current account deficit against China will improve. The biggest beneficiary will be companies that manufacture both cells and modules or just cells within India. This includes companies such as Adani Solar, Indo Solar, Websol, Jupiter Solar, etc. Module manufacturers, who do not manufacture cells, such as Vikram Solar, Waaree and Alpex Solar, will not benefit. Chinese companies such as GCL Poly and Trina solar have manufacturing facilities in Vietnam and Thailand and these facilities will not be impacted by the current anti-dummping investigation. Some international module suppliers such as REC solar (Singapore), S-Energy (South Korea) and LG Solar (South Korea) will also not be impacted by anti-dumping duties and are likely to benefit.

Q) How much will solar module prices increase by if anti-dumping duties are enforced?

A) Anti-dumping duties can increase imported module prices by approx. $ 0.04-0.05/Wp. Modules from Indian cell suppliers such as Adani, Websol and Indosolar will be $ 0.01-0.02 lower than Chinese suppliers.

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