New Delhi: The imposition of anti-dumping responsibility on photo voltaic glass final month has led to an increase in photo voltaic photovoltaic (PV) module costs by 10-12%, elevating issues over undertaking price escalations and potential delays, trade contributors stated.
The photo voltaic glass responsibility, largely geared toward provides from China, has additionally led to provide constraints that might delay tasks important to India’s purpose of attaining 500 GW of non-fossil energy era capability by 2030.
“Photo voltaic PV module represent about 60% of the undertaking price. Due to this anti-dumping responsibility there was a rise of near 12% within the photo voltaic PV module price. This implies general photo voltaic undertaking price goes up by 7-8% and all of the IRR (inside charge of return) the module makers had calculated, goes for a toss,” stated an govt with a home photo voltaic module producer, on situation of anonymity. The chief stated a number of native photo voltaic glass makers have additionally resorted to cost hikes.
In a bid to cut back imports and increase home manufacturing, the union ministry of finance final month imposed a provisional anti-dumping responsibility on textured, tempered, coated and uncoated photo voltaic glass imports from China within the vary of $673-677 per tonne and $565 per tonne for imports from Vietnam.
In line with the ministry of latest and renewable vitality, as of 30 June, the full photo voltaic photovoltaic (PV) module manufacturing capability within the nation is 85.47 GW. Nonetheless, the nation doesn’t have appreciable photo voltaic glass manufacturing capability and relies on imports. The home photo voltaic glass manufacturing capability stands at 10-12 GW.
Queries mailed to the union ministry of latest and renewable vitality remained unanswered until press time.
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Pressure on trade
“Photo voltaic glass is a important part in photo voltaic module manufacturing, constituting about 8% of whole module prices, with every module containing roughly 20 kg of photo voltaic glass,” stated Prashant Choubey, director at Avaada Electro. “The imposition of those duties has considerably elevated the efficient worth of imported photo voltaic glass, making a monetary pressure on the trade.”
“Whereas we respect the intent to advertise home manufacturing below the ‘Make in India’ initiative, there are sensible challenges,” he stated.
The responsibility has elevated module prices, which might be a burden on the ability builders in addition to the associated fee will get handed on by the producers, he added.
This price, if handed, may additionally lead to a rise in tariffs, stated trade gamers. The hike in module price raises the danger of tariff revisions below the “change in regulation” clause of the Electrical energy Act, doubtlessly delaying undertaking timelines, Choubey famous.
This enhance in price and a possible delay in provides and ultimately in undertaking implementation positive aspects significance as the federal government and the trade are making efforts to satisfy the goal of 500 GW non-fossil capability by 2030.
Nonetheless, completion of inexperienced energy tasks has gained momentum within the present monetary yr as renewable vitality tasks—photo voltaic, wind, small hydro—added 14.9 GW in April-November, practically double the 7.53 GW inexperienced capability added a yr in the past. India’s general energy era capability at present is 456.75 GW, of which 213.7 GW is non-fossil capability, which incorporates 158.55 GW of solar energy.
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Ailing-timed?
Though stakeholders agree that the transfer is geared toward creating the native manufacturing ecosystem, they imagine the responsibility ought to have been imposed with a time lag, permitting the trade to develop and put together for the elevated price and impression on provides.
“Anti-dumping duties are a step within the path of general march in direction of diversifying and indigenising elements of the provision chain,” stated Amit Paithankar, chief govt officer, Waaree Energies Ltd.
“Guaranteeing the balanced availability of varied elements whereas imposing anti-dumping responsibility will be certain that general renewable goals of the nation are fulfilled; timing of those measures is therefore, crucial.”
The Centre has taken a number of steps, together with tariff and non-tariff obstacles, to cut back photo voltaic tools imports, which largely come from China. The implementation of those obstacles gained momentum after the diplomatic spat between the 2 international locations and the Doklam dispute in 2020.
These measures embrace elevated customs responsibility on photo voltaic modules and cells and the implementation of the Authorized Record of Fashions and Producers (ALMM), whereby module-makers have been allowed to provide to government-backed tasks and utility-scale tasks. The federal government just lately introduced to have a separate record for cells.
“In a phased effort to attain self-sufficiency within the photo voltaic vitality sector, the federal government has taken steps to guard not solely module manufacturing but additionally ancillary industries,” Saurabh Agarwal, tax accomplice, EY India stated. “After rising the import responsibility on photo voltaic modules from 0% to 44% again in April 2022 and imposition of ALMM restrictions, which spurred home capability enlargement, consideration has now turned to safeguarding the manufacturing of key elements like glass and aluminium frames utilized in photo voltaic modules.”
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Noting that the responsibility has been imposed to guard the home trade from imports at very low costs and make the home trade self-reliant, Agarwal stated: “On the similar time it could be famous that imposition of anti-dumping responsibility mustn’t have an effect on the supply of the photo voltaic glass.” He expects costs to ease as localization positive aspects tempo and home glass trade scales up .
“Related tendencies have additionally been seen prior to now when localization was carried out in different sectors resembling cell phones, auto trade and white items. From a long-term perspective, imposition of such duties mustn’t impression the purpose of the Indian authorities attaining a capability of 500 GW by 2030,” he stated.
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