Indian manufacturers of solar power generation equipment are going through a difficult phase as import duty on raw materials and expense of shipping has made the situation tremendously non-viable to continue manufacturing in the country, as per Waaree Group.
"For Indian solar module manufacturers to expand their capacities, they need to sustain, which looks difficult at the moment. There will be no duty barriers for imports of solar modules from the date of Safeguard Duty expiry to the date of implementation of Basic Customs Duty while duties on import of raw materials will continue to
exist," the firm quoted Chairman and Managing Director Hitesh Doshi as saying in a statement.
He also said this nine-month period will have a incapacitating effect on native manufacturers which may also lead to a shutdown of units in India and risk 300,000 jobs. "So, till the BCD comes into force some steps need to be implemented to aid the sustenance of domestic manufacturers," Doshi said.
Mumbai-based Waaree is the largest solar PV module manufacturer in India. The firm also offers solar energy solutions employing over 2,500 people worldwide. It owns the largest solar panel module manufacturing facility in India with a capacity of 2,000 Megawatt.
He added the government's latest declaration on Production Linked Incentive scheme is a welcome step. One of the objectives of the scheme is to enhance domestic manufacturing of high efficiency indigenous PV solar modules to decrease reliance on imports and generate employment opportunities.
Doshi said in order to completely encourage dependence on imports, the owed fund for PLI Scheme is "quite meagre" and capacities likely to produce with this amount will be very less, and sanctioning of more funds will permit the manufacturers to establish additional units.