Indian Solar Panel Component Producers Seek Trade Protections Against Import Surge

New Delhi, Sep 24 (KNN) In a significant move to bolster domestic manufacturing, Indian producers of components used in solar panels are advocating for trade protections against a flood of imports, particularly from China and Vietnam.

The Solar Ancillary Manufacturers’ Association (SAMA), representing this crucial sector, has formally approached the Indian government, requesting the implementation of both tariff and non-tariff barriers to mitigate the influx of inexpensive solar products.

This appeal underscores the industry's urgent need for safeguards against 'dumping' practices that undermine local production capacities.

Pradeep Kumar Kheruka, a director at SAMA and chairman of Borosil Renewables Ltd., the nation’s largest solar glass manufacturer, articulated the association’s position in an interview.

He emphasised the necessity of creating a "level playing field" for local manufacturers. “Wherever there’s a policy distortion, we need a corresponding correction here,” Kheruka stated, highlighting the disparity faced by Indian producers in competing with subsidized imports.

Despite substantial growth in India's solar module industry, largely attributed to Prime Minister Narendra Modi's ambitious clean energy initiatives, local manufacturers still rely heavily on imported raw materials.

Currently, approximately 60 per cent of the demand for solar glass is satisfied through imports, prompting the association to call for the reinstatement of an anti-dumping duty on this vital component.

The previous five-year levy, which ended in 2022, reportedly catalysed a remarkable 17-fold increase in the sector’s growth.

To further stimulate local production, SAMA is advocating for mandatory domestic content requirements for module manufacturers, ensuring that a specified percentage of components are sourced locally.

Additionally, the association is pushing for a government-imposed quality certification to enhance the standards of domestically produced goods.

The Ministry of New and Renewable Energy has yet to respond to these requests. However, it is noteworthy that India has already imposed steep import tariffs on solar modules and cells, aimed at curbing the volume of incoming shipments.

These protective measures have been successful, leading to a nearly five-fold increase in domestic module manufacturing capacity in recent years.

Kheruka remains optimistic about the future of the sector, asserting that with appropriate support and a level playing field, domestic solar glass capacity could potentially double.

“Everyone’s ready,” he affirmed, signaling a readiness among local producers to meet the growing demands of India’s renewable energy sector.

As India continues to expand its clean energy footprint, the outcome of these trade protection discussions will be crucial in shaping the landscape for domestic solar component manufacturers, ensuring that they can compete effectively and contribute to the country’s renewable energy goals.

(KNN Bureau)