When there is a Dumping of goods hurting the domestic manufacturing, imposition of anti dumping duty is fair.
I also agree with your views that Anti-dumping duty on solar PV in India: more harm than good as there are (1) negligible vertically integrated units (2) Few quality conscious bankable module manufacturer and (3) most of them are too debt ridden to do contract manufacturing at globally competitive cost even when cells are assigned to them.
Govt of India has imposed anti-dumping duty on solar energy cells being imported from the US, China, Taiwan and Malaysia. Dumping is not limited to price reduction, we have seen flooding of market with non-bankable poor quality products mis represented as bankable products.
There are groups of speculative Indian and foregn developers, against anti dumping duty..They have suceeded in convincing the govt to withdraw anti dumping duty.
Before initiating the process of imposing anti dumping duty, govt of India gave adequate opportunity to manufacture products and components in India at globally competative cost.
More than a year back DEITY, Govt of india introduced industrial promotion initiatives like Modified Special Incentive Schemes (M-SIPS) for promotion of Electronics Systems Design and Manufacturing (ESDM) Industries. Under M-SIPS scheme, units coming up in upcoming EMC (Electronics Manufacturing Cluster), establishes a vertically integrated wafer to cell to module manufacturing unit cluster, it will get back benefit from Govt of India in-terms of upto 25 % of CAPEX + Reimbursement of excise/ CVD on capital equipments for following facility and allowable capital cost –
- Polysillicon manufacturing unit – Capital Investment upto Rs 850 Cr.
- Polysillicon Technology Ingots & or Wafers – Capital Investment upto Rs 400 Cr.
- Polysillicon Technology Cells or Cell & Modules – – Capital Investment upto Rs 100 Cr.
Instead of backing out of proposed anti dumping duty, govt must be firm. Govt of India must make removal of anti dumping duty conditional..
Foreign companies desirous of doing business in India without imposition of anti dumping duty must commit to start manufacturing within a period of 18 to 24 months after commencement of trade.The volume of import should be linked to the proposed indian plant capasity monthly production times 18 to 24 months. During this period the importer has to deposit the calculated anti dumping duty with a govt designated Renewable Energy Development Fund.Once the indian manufacturing plant starts operation, the REDF returns back the principal amount deposited by the importer for payment towards anti dumping duty.If the importer miss the target for regulatory bottlenecks or force majure condition, time dispensation of six months will be given. The importer has to make additional deposit of value of anti-dumping duty with the REDF to get time dispensation.In the case of non serious importer, the deposit with REDF is forfeited after the period of 18 to 24 Months.
Anti dumping duty deposited with REDF and interest earnings from it should be earmarked for low cost debt / mezanine funding of projects that needs non-recourse funding.
THE ABOVE MENTIONED OPTION OF MAINTAING ANTI DUMPING DUTY FOR NON SERIOUS IMPORTERS ( who dont even have a local company or corporate entity to do trading, just a liaison office) WOULD NOT THE ROAD AHEAD FOR GRID PARITY AND INDEGENIZATION OF STRATEGIC INDUSTRY.