AISIA has urged Power and New & Renewable Energy Minister R K Singh that structural safeguards and tariff-based barriers are needed for domestic manufacturing to gain a foothold and establish itself. The body highlighted that the (solar equipment) “domestic manufacturers run their plants at 30 per cent capacities and incur huge unbearable losses.”
Industry body All India Solar Industries Association (AISIA) has urged Power and New & Renewable Energy Minister R K Singh that structural safeguards and tariff-based barriers are needed for domestic manufacturing to gain a foothold and establish itself. The body highlighted that the (solar equipment) “domestic manufacturers run their plants at 30 per cent capacities and incur huge unbearable losses.”
In the letter shot off to Singh earlier this week, the body stated that “having been hopeful of a revival in the last decade and after surviving strong headwinds, we are passing through even more difficult times where our survival is at stake and without a robust local ‘Make in India’ Solar manufacturing, the security of India’s energy sector is in peril.”
It urged that for domestic manufacturing to gain a foothold & establish itself, it is imperative that there are structural safeguards (ALMM-Approved List of Models and Manufacturers) and tariff-based barriers (BCD/ SGD etc. basic custom duty, safeguard duty) besides production-linked incentives for 4 to 5 years before these are tapered-off gradually.
It also pointed out that during the last 6 months, from September 2021 to February 2022, 11.93 GW of module imports clearly showed that developers and traders want to sabotage domestic manufacturing.
The Approved List of Models and Manufacturers (ALMM) is the only structural non-tariff barrier to effectively rule out unscrupulous moves like circumvented supplies from Chinese manufacturers through shadow manufacturing and export from ASEAN countries with whom India has FTA (free trade agreement), it stated.
Today, at stake are 200,000 jobs and 125 solar manufacturing units which are becoming Non-performing assets (NPAs) and dealing a body blow to the security of India’s energy sector, it told the minister.
The body urged for “expeditious action & prayed for no change in the schedule of implementation of revised ALMM order from April 1, 2022.”
