MNRE Proposes Allocating 7.5 GW of Solar Under CPSU Phase-II Program to Support Domestic Solar Manufacturing

August 4, 2017


The Ministry of New & Renewable Energy (MNRE) has proposed 7.5 GW of solar to be developed using domestically manufactured solar cells and modules during the second phase of its CPSU program. The program is designed to help the revival of domestic solar manufacturing, which is facing intense competition from Chinese module manufacturers. The information was presented in a report titled the National Solar Mission – An Appraisal during a Lok Sabha committee meeting on energy.

In June 2017, the United States and India had agreed that December 14, 2017 will be the last day for the domestic content requirement (DCR) category. Following the notification from the World Trade Organization regarding end of DCR category and due to lower average selling prices (ASPs) of Chinese modules in India, Indian Solar Manufacturers Association (ISMA) filed a new anti-dumping petition against solar imports from China, Taiwan, and Malaysia with the Directorate General of Anti-Dumping (DGAD), Ministry of Trade and Commerce. On July 21, 2017, DGAD initiated the investigation into the anti-dumping petition.

“This may be the answer to avoid a disruptive anti-dumping tariff imposition by providing a market for domestic manufacturers – if this proposal can get approved. However, it needs to be done in a way that does not violate the WTO ruling and the CPSUs will have to actually auction and procure solar through DCR, even though these projects will be expensive compared to Non-DCR projects,” said Raj Prabhu CEO of Mercom Capital Group.

Previously, the MNRE allocated 1,037 MW of solar under Phase-I of its CPSU Program to 15 CPSU and government organizations, of which nearly 445 MW has already been commissioned.

Meanwhile, in an another update from Lok Sabha, the Minister of State (Independent Charge) for the Ministry of Commerce & Industry, Nirmala Sitharaman stated that DGAD and MNRE have not received any representation against the imposition of anti-dumping duties on solar cells or modules.

Image Credit: By Laurie Jones aka ljonesimages on Flickr [CC BY-SA 2.0], via Wikimedia Commons