Domestic solar equipment makers flag low capacity utilisation, seek government intervention

Industry reeling from onslaught of Chinese imports, warns association

Without a robust local ‘Make in India’ solar manufacturing, the security of India’s energy sector is in peril, warns All India Solar Industries Association. File | Photo Credit: Reuters

The All India Solar Industries Association (AISIA) has urged the government to intervene amid concerns that solar equipment manufacturing units were operating at 30% capacity due to massive imports by traders from China.

In a letter to Power Minister R.K. Singh, the representative association for domestic solar equipment makers said: “Having been hopeful of revival for the last decade and survived 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.”

“For domestic manufacturing to gain foothold and establish itself, it is imperative that there are structural safeguards and tariff-based barriers besides production incentives for 4-5 years before these are tapered off gradually,” it said.

Emphasising that domestic manufacturers were running their plants at 30% capacities and incurring huge losses, it added: “We request and pray for immediate and urgent intervention to thwart any such nefarious moves from those interested in dumping Chinese imports, leading to grave consequences, including most units turning to NPA and some may even nosedive to bankruptcy.”

It has urged that the schedule of implementation of revised Approved List of Models & Manufacturers (ALMM) order from 1 April 2022 be retained without change.

The association said imports since April 2021 had been consistently above 800 MW per month.

“The cumulative imports for 11 months till February 2022 is 16 GW, which is much more than the rate of deployment and total installation of 10 GW clearly indicating huge stockpiling and speculative activities,” it added.

“From September 2021 to February 2022, 11.93 GW of module imports clearly shows that Developers and Traders want to sabotage domestic manufacturing. 3.21 GW import in February amplifies the plight of domestic manufacturers,” it said.

It pointed out the Indian Solar Equipment Manufacturing industry had been reeling under an onslaught from Chinese imports, resulting in several units closing down and getting into liquidation, with survivors being mostly on the brink.

“Today, at stake are 200,000 jobs and 125 solar manufacturing units becoming NPAs dealing a body blow to the security of India’s energy sector,” the association said.