Import duty on Solar & Wind energy equipments from China recommended by Anti-dumping Authority
The Directorate General of Anti-Dumping and Allied Duties (DGAD) has recommended imposing anti-dumping duty on castings imported from China for use in the construction of wind turbines and is also considering a similar petition for solar equipment. The duty suggested varies between 6.57 per cent and 32.95 per cent for different Chinese companies, six of which are specifically named.
Indian authorities have been increasingly acting against cheap Chinese imports, which Indian manufacturers say are routinely priced below cost of production and have contributed to India’s trade deficit of $51 billion with China.
DGAD had initiated an inquiry into the import of castings from China in early 2016 following a petition filed by Larsen & Toubro. The report on the investigation concludes that the castings were being “exported to India from the subject country (China) below normal values” and that “the domestic industry has suffered material injury” on account of such exports.
Castings comprise a number of vital parts of a wind turbine, including the hub, mainframe, various shafts, axles and more. Wind industry insiders said they add up to about 3 per cent of the total cost of the turbine and that once the anti-dumping duty is imposed, their cost could go up by 5-20 per cent. Wind energy tariffs dropped spectacularly from the previous Rs 4-5 per kwH to Rs 3.46 per kwH in the first and only auction of wind projects held in February this year, but the imposition of anti-dumping duty now could reverse the trend unless developers absorb the extra cost.
Solar tariffs have also fallen steeply in recent years due to cheap imports from China. The DGAD report recommending anti-dumping duty on castings from China specifically names six Chinese companies and the duties they should be slapped with: Zhejiang Jiali Wind Power Technology, 6.27 per cent; Jiangsu Sinojit Wind Energy Technology and its associate companies, 14.44 per cent; Yeong Guan Energy Tech Group, 15.46 per cent; Dalian Huarui Heavy Industry Casting, 18.48 per cent; Nangtong Hongde Mechanical, 18.64 per cent; and Jiangsu Faw Foundry, 28.83 per cent. A uniform duty of 32.95 per cent has been recommended for all other Chinese suppliers.