The domestic solar manufacturers lobby says it is hopeful of relief on the issue of dumping of Chinese solar panels as a result of the investigation initiated by the commerce ministry’s arm Directorate General of Anti-Dumping (DGAD).
The probe by DGAD was initiated after a petition was filed on 2 June, 2017 by Indian Solar Manufactures Association (ISMA) on behalf of Indosolar Limited, Websol Energy Systems, Jupiter Solar Power and Jupiter International. The petition sought initiation of anti-dumping investigation and imposition of anti-dumping duties concerning imports of solar cells from the three countries.
“We are grateful to the government for swift action on our petition over this issue which has caused significant injury to the Indian industry as undercutting by the three countries continues to be unabated. Their undercut prices are nearly 40 per cent lower than ours, causing significant injury to us and we hope the government will give us interim relief,” ISMA Spokesperson Dhruv Sharma told ETEnergyworld.
The DGAD has prima facia found evidence of dumping of the goods from the three countries causing injury to the domestic industry. “The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry concerning imports of the subject goods from subject countries to determine the existence, degree and effect of alleged dumping and injury to recommend the amount of antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry,” a DGAD notification said.
The DGAD will now write to the stakeholders involved seeking their response in minimum 40 days of the initiation of the investigation. ISMA has alleged that imports from the three countries had gone up significantly as they were undercutting their prices thereby causing severe financial loses to the Indian manufacturers. “The Chinese manufacturers would sell the modules at higher prices in China, Japan, Europe and US in contrast to India where it was sold at significantly lower prices,” the ISMA official said.
Anti-dumping cases are governed by the norms of the World Trade Organisation (WTO) and there are well-defined ways to determine dumping margins. Experts say, following the initiation of the investigation, data is collected from the parties involved for determining the dumping margin. “The dumping margin can be determined through various ways. In case the three countries are selling the same goods at a higher price in other countries as compared to India, then the difference will be considered as the dumping margin,” said A S Firoz, Chief Economist at the Economic Research Unit of the steel ministry.
He added the next step will be to establish whether the domestic industry faced significant injury on account of the dumping margin.