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					</table><p>Prices of solar modules shipped from Asia to Europe have jumped as much as 20% as trade disruptions in the Red Sea, which carries 12% of the world’s seaborne trade, have spiked freight costs.</p>
<p>Since mid-November, heightened hostilities from Houthi militia targeting vessels passing through the Red Sea have resulted in swaths of merchant fleet avoiding the key trade route. The Red Sea connects to the Suez Canal—the shortest sea route between Asia and Europe.</p>
<p>“The logistics premium pertaining to the Houthi attacks on Red Sea shipping is $0.01 to $0.02 per watt. For context, the global benchmark price for crystalline modules is $0.10 per watt. So, we are looking at an extra 10% to 20% surge in module price,” said Pavel Molchanov, an analyst at investment bank <a href="https://www.raymondjames.com/" target="_blank" rel="noopener">Raymond James</a>.</p>
<p>With solar photovoltaic manufacturing primarily concentrated in China, Europe&#8217;s heavy reliance on the country is evident as the European Union has imported 84% of its installed solar photovoltaic modules in the last five years, according to the Paris-based <a href="https://www.iea.org/" target="_blank" rel="noopener">International Energy Agency</a>. At the same time, Europe imported about 6 GW of solar modules from India in 2023, according to <a href="https://www.mercomindia.com/research" target="_blank" rel="noopener">Mercom India Research</a>.</p>
<p>With ships forced to go around Africa&#8217;s Cape of Good Hope, an additional 9,600 kilometers are tacked onto their voyage, amplifying both the cost of fuel and time required to transport solar modules. Approximately two weeks of additional transit time is being added due to the rerouting.</p>
<p>REC Silicon, a Norway-based polysilicon manufacturer, recently said during a post-earnings call that the Red Sea Crisis has <a href="https://www.mercomindia.com/rec-silicon-revenue-rises-semiconductor-strength" target="_blank" rel="noopener">affected</a> its scheduling and freight costs in European routes. The company makes solar-grade polysilicon, a key ingredient used to manufacture solar panels in various markets.</p>
<p>Solar tracker firm NEXTracker, too, <a href="https://www.mercomindia.com/nextracker-q3-revenue-up-higher-deliveries" target="_blank" rel="noopener">warned</a> that some shipments are being rerouted due to the conflict, which has an impact on deliveries and costs.</p>
<p>As of now, manufacturers have passed along this logistics surcharge to their customers, adjusting module prices upward by €0.01 (~$0.0107) to €0.02 (~$0.0215) per watt depending on negotiations, said Amy Fang, senior analyst at renewables research firm <a href="https://www.infolink-group.com/" target="_blank" rel="noopener">InfoLink Consulting</a>.</p>
<p>“Prices will be adjusted under terms and conditions, and the shipping costs will be amortized by both sides,” said Fang, adding that a short-term mismatch of supply and demand could also become a cause for concern.</p>
<p>A China-based solar module supplier Mercom spoke to also said that shipping expenses have risen, at under $0.01 per watt, and warned that they could rise further if disruptions in the Red Sea persist.</p>
<p>But downstream consumers in Europe seem unfazed by the pricing uptick and longer lead times considering modules prices have dropped by about 50% in 2023, the market is oversupplied with panels, and inventory levels are still pretty high.</p>
<p>Last year, the European Parliament <a href="https://www.mercomindia.com/eu-parliament-votes-to-boost-2030" target="_blank" rel="noopener">voted</a> to increase the share of renewable energy to 42.5% by 2030, driving demand for solar modules.</p>
<p>However, the increase in the cost of modules is not affecting the capital expenditure of building a solar project just yet. As a percentage of the all-in, fully installed system cost, the jump in prices of solar modules represents only about 1% to 2%, said Molchanov.</p>
<p>Demand for modules also remains robust as prices are at all-time lows, driving fierce market competition. The recent module price drops have been a boon for buyers, so slightly higher freight fees are palatable right now.</p>
<p>The Chinese supplier, however, said that slimmer margins have manufacturers concerned, especially if customers compel them to cover freight all the way to project sites. The margins had already depleted due to historically low prices.</p>
<p>Because the cost of modules has fallen so significantly, the additional cost is being absorbed without any issues. Two weeks of additional transit time will have to be built into the supply chain and inventories.</p>
<p>Hopefully, this is a short-term situation that will be resolved. If not, suppliers said they will have to explore the long-term viability of alternative routes and a comparative increase in shipping prices.</p>
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Red Sea Shipping Crisis Hits Key Trade Route for Solar Modules


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					</table><p>The government has greenlit pilot projects aimed at decarbonizing the shipping sector using green hydrogen under the National Green Hydrogen Mission (NGHM), the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has said.</p>
<p>The program aims to support the deployment of green hydrogen and its derivatives as fuel for ship propulsion and develop bunkering and refueling facilities at ports. It has an outlay of ₹1.15 billion (~$13.9 million) until the financial year 2025-26.</p>
<p>The pilot projects will be implemented through the Ministry of Ports, Shipping and Waterways (<a href="https://shipmin.gov.in/" target="_blank" rel="noopener">MoPSW</a>) and nominated executing agencies.</p>
<p>The program has two components. Under component A,  existing ocean-going and inland waterways vessels will be retrofitted with green methanol, green ammonia, or hydrogen fuel cell-based propulsion systems at a cost of ₹800 million (~$9.7 million). The Shipping Corporation of India (<a href="https://www.shipindia.com/" target="_blank" rel="noopener">SCI</a>) will retrofit at least two ships by 2027.</p>
<p>Component B involves developing bunkering and refueling facilities for green hydrogen-based fuels at one port on an international shipping route by 2025 at a cost of ₹350 million (~$4.2 million). MoPSW will identify the port.</p>
<p>The program will only fund capital expenditure on the retrofits and bunkering and refueling facilities on ports. Expenses to produce green hydrogen or land will not be funded.</p>
<p>The central financial assistance will be disbursed in three stages: Issue of letter of award (20%), milestone-based disbursement (70%), and completion (10%).</p>
<p>The pilot projects aim to validate the technical and economic viability of using green hydrogen in shipping. They will help assess operational issues, safety, infrastructure needs, and regulations required for scaling up deployment.</p>
<p>The executing agencies selected for the projects will then share the outcome of the pilot projects to disseminate findings, best practices, and lessons learned.</p>
<p>A steering committee under MoPSW and MNRE will monitor the scheme, while project appraisal and selection will be done through a transparent process.</p>
<p>The government hopes that the use of green hydrogen and its derivatives in the shipping sector, through the proposed pilot projects, will lead to the development of necessary infrastructure like refueling stations, storage, and distribution networks.</p>
<p>Last month, MNRE <a href="https://www.mercomindia.com/mnre-incentives-green-hydrogen-production" target="_blank" rel="noopener">released</a> an implementation framework to incentivize the production of 200,000 MT of green hydrogen annually.</p>
<p>Last month, ten companies won Solar Energy Corporation of India’s tender to <a href="https://www.mercomindia.com/greenko-acme-reliance-winners-secis-green-hydrogen-auction" target="_blank" rel="noopener">set up</a> 450,000 metric tons/annum production facilities for green hydrogen.</p>
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Government Launches Pilot Projects Using Green Hydrogen in Shipping


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					</table><p><a href="https://www.mercomindia.com/government-finance-green-shipping-project-cost" target="_blank" rel="noopener"><strong>The Ministry of Ports, Shipping, and Waterways will bear 30% of the cost for green shipping initiatives to accelerate the green transition in the Indian shipping sector and bring efficiency via the digitization of port operations.</strong></a> The ministry also announced that four state-owned ports, namely Jawaharlal Nehru Port, VO Chidambaranar Port, Paradip Port, and Deendayal Port, will procure two green tugboats each to expedite the Green Tug Transition Program.</p>
<p><a href="https://www.mercomindia.com/battery-emo-raises-%e2%82%b9100-million-seed-funding" target="_blank" rel="noopener"><strong>Bengaluru-based energy startup EMO Energy, which builds battery packs for high-power applications, has raised ₹100 million (~$1.2 million) in a seed round led by Transition Venture Capital.</strong></a> The round was co-led by Gruhas. EMO Energy offers battery packs for light electric vehicles. The company said these battery packs are powered by ZEN, a proprietary cell-agnostic tech platform that allows 100% fire safety, 20-minute fast charging, and 120% improvement in battery life.</p>
<p><strong> </strong><a href="https://www.mercomindia.com/uttar-pradesh-bids-solarization-1000-agricultural-pumps" target="_blank" rel="noopener"><strong>Uttar Pradesh New and Renewable Energy Development Agency has invited bids to install and commission grid-connected solar power systems for 1,000 agricultural pumps</strong></a> under Component C1 of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. The successful bidder will have to operate and maintain the project for five years from the date of commissioning. The last date to submit the bids is June 15, 2023. Bids will be opened the following day.</p>
<p><a href="https://www.mercomindia.com/sjvn-green-140-mwp-modules-punjab" target="_blank" rel="noopener"><strong>SJVN Green Energy, a wholly-owned subsidiary of SJVN, has invited bids to manufacture and supply 140.4 MWp of solar modules for the Pojewal and Rurki Chandpur solar power projects in Nawashahar, Punjab.</strong></a> The modules must be supplied within four months of receiving the work order. The last date to submit the bids is June 13, 2023. Bids will be opened on the same day.</p>
<p><a href="https://www.mercomindia.com/hpcl-invites-bids-for-solar-in-karnataka" target="_blank" rel="noopener"><strong>Hindustan Petroleum Corporation has invited bids from contractors to develop two solar projects with a cumulative capacity of 3.6 MW in the towns of Yediyur and Hiriyur in Karnataka.</strong></a> The company has floated two tenders for a capacity of 1.7 MW and 1.9 MW. The deadline for submitting bids for the Yediyur project is June 2, 2023, and the proposals will be opened on the same day. For the Hiriyur project, the deadline for bid submission is June 5, 2023, and the bids will be opened on the same day.</p>
<p><a href="https://www.mercomindia.com/eastern-railway-bids-1-mw-rooftop-solar-systems" target="_blank" rel="noopener"><strong>The Sealdah Division of Eastern Railway has invited bids for the design, supply, installation, and commissioning of 1 MW of rooftop solar systems.</strong></a> The project must be completed within 12 months of the letter of award. The minimum installed capacity of the solar system in any location will be 10 kW. The last date to submit the bids is June 12, 2023.</p>
<p><a href="https://www.mercomindia.com/iti-553500-polycrystalline-solar-cells" target="_blank" rel="noopener"><strong>ITI Limited, a public sector undertaking under the Department of Telecommunications, has floated a tender to supply 553,500 polycrystalline solar cells.</strong></a> The total tender value is ₹36.5 million (~$440,754). The entire quantity must be supplied in three lots against each purchase order. The last date to submit bids is June 7, 2023. Bids will be opened on the next day.</p>
<p><a href="https://www.mercomindia.com/optimal-tariffs-and-efficient-financing-risks-interview" target="_blank" rel="noopener"><strong>Better forecasting and optimal and buffered project tariffs reduce the risks and make it easy for lenders to finance renewable projects over a longer term, P K Sinha, ED Projects at Power Finance Corporation,</strong></a> said in an exclusive interview on the sidelines of the Mercom India Renewables Summit 2023. He also added that stricter regulations around financing had been one of the driving factors behind the considerable improvement in the otherwise sluggish performance of state distribution companies.</p>
<p><a href="https://www.mercomindia.com/indigenous-technology-key-solar-manufacturing" target="_blank" rel="noopener"><strong>Gradually indigenizing the technology used in solar module manufacturing and creating products that cater specifically to the unique market conditions in India could help India advance towards becoming a manufacturing hub</strong></a><strong>,</strong> Shubra Mohanka, Director at Gautam Solar, commented in an exclusive interview on the sidelines of Mercom India renewables Summit 2023.</p>
<p><a href="https://www.mercomindia.com/iit-jodhpur-proposes-offshore-wind-farms-to-cool-nuclear-plants" target="_blank" rel="noopener"><strong>Researchers from the Indian Institute of Technology (IIT Jodhpur) have proposed employing offshore wind farms as reliable power sources for meeting the cooling requirements of nuclear power plants.</strong></a> The study, conducted at the Madras Atomic Power Station in Chennai, showcases the applicability of this strategy to enhance the seismic resilience of nuclear power plants. The findings of this research have been published in the <em>Nuclear Engineering and Design Journal</em>.</p>
<p><a href="https://www.mercomindia.com/dfc-commits-49-5-million-expand-smart-meter-program" target="_blank" rel="noopener"><strong>The U.S. International Development Finance Corporation (DFC) has agreed to extend a loan of $49.5 million to Genus Power Infrastructures for the expansion of electric smart meters implementation across India.</strong></a> DFC is the development finance institution of the United States. Genus has manufacturing plants across Jaipur, Haridwar, and Guwahati, with an installed capacity of over 10 million smart meters.</p>
<p><a href="https://www.mercomindia.com/solar-manufacturing-2022-meet-2030-iea" target="_blank" rel="noopener"><strong>The current global project pipeline for solar energy is capable of accommodating the deployment needs by 2030 if the utilization rates increase to 85% on average, under the Net Zero Emissions scenario</strong></a><strong>,</strong> according to a recent analysis by the International Energy Agency (IEA). In the report, IEA dissected the manufacturing capacities around clean technology with a focus on solar photovoltaic modules, wind turbines, batteries, electrolyzers, and heat pumps.</p>
<p><a href="https://www.mercomindia.com/chinese-low-cost-solar-exports-challenge-us-eu-india-reshoring-policies" target="_blank" rel="noopener"><strong>China’s solar exports surged by 64% to $52 billion in 2022, on the back of low-cost supply and technological expertise, despite global trade tensions, according to a recent analysis published by Wood Mackenzie.</strong></a> The solar exports from China during the year were mainly dominated by modules, with Europe being the country’s top solar module export destination with a 56% share. Solar cell exports grew by over 100%, with Southeast Asia taking a 31% share of the total exports.</p>
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Daily News Wrap-Up: Government to Bear 30% of Green Shipping Cost


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					</table><p>The Ministry of Ports, Shipping, and Waterways (<a href="https://shipmin.gov.in/" target="_blank" rel="noopener">MoPSW</a>) will bear 30% of the cost for green shipping initiatives to accelerate the green transition in the Indian shipping sector and bring efficiency via the digitization of port operations.</p>
<p>The ministry also announced that four state-owned ports, namely Jawaharlal Nehru Port, VO Chidambaranar Port, Paradip Port, and Deendayal Port, will procure two green tugboats each to expedite the Green Tug Transition Program.</p>
<p>Deendayal Port and VO Chidambaranar Port have been designated green hydrogen hubs, with comprehensive development plans to be implemented throughout the upcoming fiscal year.</p>
<p>Additionally, the ministry plans to introduce a streamlined single-window system to oversee river and sea cruises, enhancing efficiency and monitoring capabilities.</p>
<p>&#8220;It is a moment of satisfaction as we have been able to put together these five action areas during this ongoing &#8216;Chintan Shibir&#8217; with a clear focus to promote green shipping and bringing efficiency via the digitization of port operations. Under the leadership of the Prime Minister, the ministry remains steadfast in its endeavor to become a global leader in the maritime sector. The initiatives announced will not only further this objective but also help us bring in more sustainable development in the maritime sector,&#8221; said Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways.</p>
<p>Recently, Sonowal said two ports on India&#8217;s east coast and one port on the west coast would be <a href="https://mercomindia.com/shipping-ministry-develop-ports-as-hydrogen-hubs/" target="_blank" rel="noopener">developed</a> by the Ministry of Ports, Shipping, and Waterways as hydrogen hubs as part of the Green Shipping Initiative.</p>
<p>Last November, the minister <a href="https://mercomindia.com/india-aims-to-raise-green-vital-ports-to-60-from-10-now/" target="_blank" rel="noopener">launched</a> the National Center of Excellence for Green Port and Shipping to help major Indian ports source as much as 60% of their energy demand from clean sources like solar and wind.</p>
<p>The government has said India will <a href="https://mercomindia.com/india-aims-power-demand-renewables/" target="_blank" rel="noopener">implement</a> International Maritime Organization energy efficiency and carbon intensity requirements for ships on all its coastal or international vessels to help achieve greenhouse gas reduction targets.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
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<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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Government to Finance 30% of Green Shipping Project Cost

<p>The current surge in container freight rates, if sustained, could increase global import price levels by 11% and consumer price levels by 1.5% between now and 2023, according to <a href="https://unctad.org/" target="_blank" rel="noopener">UNCTAD&#8217;</a>s Review of Maritime Transport 2021.</p>
<p>&#8220;The current surge in freight rates will have a profound impact on trade and undermine socioeconomic recovery, especially in developing countries, until maritime shipping operations return to normal,&#8221; said UNCTAD Secretary-General Rebeca Grynspan.</p>
<p><strong>Supply-side constraints  </strong></p>
<p>The report says that the demand for goods surged in the second half of 2020 and into 2021. This large swing in containerized trade flows was met with supply-side capacity constraints, including container ship carrying capacity, container shortages, labor shortages, continued on and off Covid-19 restrictions across port regions, and congestion at ports.</p>
<p>The mismatch between surging demand and de facto reduced supply capacity led to record container freight rates on practically all container trade routes.</p>
<p>For example, the Shanghai Containerized Freight Index (SCFI) spot rate on the Shanghai-Europe route was less than $1,000 per TEU (twenty-foot equivalent) in June 2020, jumped to about $4,000 per TEU by the end of 2020, and rose to $7,395 by the end of July 2021. Cargo owners faced delays and surcharges and still encountered difficulties to ensure their containers were moved promptly.</p>
<p>The <a href="https://mercomindia.com/freight-charges-module-remain-high-six-months/" target="_blank" rel="noopener">increase</a> in freight rates could affect India&#8217;s solar industry, which relies on imports of modules and cells, mainly from China. Indian solar developers and engineering, procurement, and construction (EPC) service providers have already been bearing the brunt of the increase in freight charges and the shortage of raw materials that have pushed up project costs and scrambled timelines.</p>
<p><strong>Impact on manufacturing</strong></p>
<p>Concerns abound that the sustained higher shipping costs will not only weigh on exports and imports but could also undermine recovery in global manufacturing, the report says.</p>
<p>The report says a surge in container freight rates will add to production costs, rising consumer prices, and slowing national economies. Manufacturers in the United States rely mainly on industrial supplies from China and other East Asian economies, so continued cost pressures, disruption, and delays in containerized shipping will hinder production.</p>
<p>The spike in steel prices has <a href="https://mercomindia.com/commodity-prices-continue-rising-solar/" target="_blank" rel="noopener">exacerbated</a> the situation for Indian EPC players and solar module manufacturers. The upward trend that started early this year shows no sign of slowing. Steel prices were hovering around the ₹36,000 (~$490)/ton mark in June this year, a 25% increase in two months.</p>
<p>The maritime supply capacity will also be affected by the industry&#8217;s transition towards zero-carbon shipping in the medium to longer term. To ensure that the necessary investment in ships, ports, and the provision of new fuels is not delayed, it will be necessary for investors to count on a predictable global regulatory framework, the report says.</p>
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Spike in Freight Rates Likely to Impact Global Import Prices by 11% Until 2023: UNCTAD

<p>Supply chain constraints and the consequent increase in solar cell and module prices could continue to plague the solar industry in India for the next three to four quarters.</p>
<p>At a session “<a href="https://mercomindia.com/mercom-solar-conference-india-virtual-event-2021/agenda/" target="_blank" rel="noopener">The Black Swan: Supply Chain and How to Mitigate Market Surprises</a>” on Day Two of the <a href="https://mercomindia.com/mercom-solar-conference-india-virtual-event-2021/overview/" target="_blank" rel="noopener">Mercom India Solar Summit 2021</a>, panelists discussed at length on the challenges faced by the Indian solar industry post the outbreak of the Covid-19 pandemic.</p>
<p>Harshvardhan Govil, Chief Operating Officer, <a href="https://www.adanisolar.com/" target="_blank" rel="noopener">Adani Solar</a>, Pradeep Kumar, Director of Business, <a href="https://en.longi-solar.com/" target="_blank" rel="noopener">LONGi Solar</a>, Sandeep Shivhare, Senior Manager, <a href="https://www.adaniports.com/" target="_blank" rel="noopener">Adani Ports</a>, and Bimal Jindal, Director SCM, <a href="https://sbenergy.com/" target="_blank" rel="noopener">SB Energy</a>, participated in the discussion. Priya Sanjay, Managing Director, Mercom India, moderated the panel.</p>
<p>The panelists felt that India has no option but to go in for backward integration and build capacity to manufacture the whole spectrum of components ranging from solar cells and modules to wafers and ingots domestically. This, they said, is necessary to mitigate the risks arising from Black Swan events like the Covid-19 pandemic, which has led to supply chain and logistics challenges.</p>
<p>The focus should not be restricted to cells and modules but on the entire component mix. Instead, a holistic view of all the elements of the manufacturing sector should be taken, they added.</p>
<p>Govil of Adani Solar said that self-sufficiency is key, even if the manufacturing of wafers and ingots is capital-intensive. “Such projects can be set up in public-private partnership mode,” he said.</p>
<p>Adani had already set up a facility to manufacture EVA (ethylene vinyl acetate) and backsheet. The company was also expanding cell and module manufacturing capacity by three times, he said.</p>
<p>Replying to a question whether LONGi had any plans to set up a manufacturing facility in India, Pradeep Kumar said that his company was keen to do so. “The environment has to be right … we have to tie up with raw material suppliers like EVA, backsheet, glass, among others. We need partners also to set up shop in India.”</p>
<p>An announcement in this regard can be expected from the company soon. LONGi was in active negotiations with the authorities as well as partners, he said.</p>
<p>The panelists talked at length about the supply side constraints like shortage of polysilicon and glass – the raw materials that go into the manufacture of cells and modules – increase in steel prices, aluminum, copper, silver, shortage of containers, and the freight spiral. All of these factors had thrown up a host of challenges for the Indian solar industry. They were of the view that many of these challenges will continue into early next year.</p>
<p>In March this year, Mercom reported that the solar <a href="https://mercomindia.com/anti-dumping-duty-on-solar-glass/" target="_blank" rel="noopener">glass shortage</a> in China that started some six months back had adversely impacted the Indian solar manufacturing industry. This, coupled with the duties on glass, has started to take its toll on the industry.</p>
<p>Asked by Priya Sanjay about his learnings from international markets, Bimal Jindal of SB Energy said that commissioning timelines of projects are planned better in other countries. Developers tie-up with module vendors at the bid stage itself. “In India, that is not the case. In other markets, they don’t compress timelines. India has the shortest cycle of commissioning, which creates a lot of pressure,” he said.</p>
<p>India was a low-cost market with cut-throat competition among developers. “Other markets are able to absorb shocks better,” he said.</p>
<p>Jindal anticipated the uncertainty to prevail till March 2022. “The dust will settle by then. Prices of modules and cells will decrease in 2022,” he said.</p>
<p>Govil said that access to wafers was a big challenge for Adani as well. “It is difficult to build strategic partnerships with Chinese suppliers … you have to lock in capacities with them in advance.”</p>
<p>Sandeep Shivhare of Adani Port spoke about container shortage and freight rates going up. Much of the cargo container manufacturing capacity – up to 85% &#8212; is in China. “India has only one facility. We have to increase the capacity of container manufacturing to avoid issues in the future,” he said.</p>
<p>The pandemic has caused several logistical challenges arising from container shortage, delays in cargo evacuation, and increased freight charges. The shortage of labor led to containers getting stuck in ports in the U.S. and Europe, leading to an increase in shipping charges. As freight margins and imports are high in the US, most containers are assigned to US and India is the last country of consideration, leading to shortage. According to Sandeep, this issue of higher freight charges and shortage of containers will be at least 6-9 months to return to normalcy.</p>
<p>“I don’t see any reduction in prices, especially in the wake of the second wave of Covid-19. Developers will delay projects, but for how long I can’t say,” he said.</p>
<p>Mercom had written about solar companies reporting that shipping/freight charges had shot up substantially in the range of 500%-800% in the last quarter of 2020, raising the cost of new installations. As a result, contracts were being <a href="https://mercomindia.com/freight-charges-adding-financial-burden-solar/" target="_blank" rel="noopener">terminated</a> at FOB (freight on board) Incoterms and the freight at actuals at the ports.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/nagaraj/" class="vcard author" rel="author"><span class="fn">B.S. Nagaraj</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nagaraj_edtd-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">B.S. Nagaraj,</strong> Senior Editor at Mercom India<br />
<a href="https://mercomindia.com/author/nagaraj/" target="_blank" rel="noopener">More articles from B.S. Nagaraj.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nagaraj_edtd-1.jpg" alt="Nagaraj Bharadwaj" /><a href="https://mercomindia.com/author/nagaraj/" target="_blank" rel="noopener"><strong style="color: #00b451">B.S. Nagaraj</strong></a> is a Senior Editor at Mercom India. Nagaraj is an experienced journalist and has held senior roles in publications like The Indian Express and Deccan Herald, and Qatar Tribune. He has also worked for business advisory and risk management consulting firms in New Delhi.<br />
<a href="https://mercomindia.com/author/nagaraj/">More articles from B.S. Nagaraj.</a></p>
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Backward Integration Vital to Build Manufacturing Capacity in Indian Solar Sector

<p>The <a href="http://sagarmala.gov.in/" target="_blank" rel="noopener noreferrer">Ministry of Shipping</a> has issued a notice to major ports in the country with directions to deal with issues arising due to the Coronavirus pandemic.</p>
<p>The Ministry, in its notice, directed all major ports to ensure that no penalties, demurrage (charges to be paid to the owner of a chartered ship on failure to load or discharge the ship within the time agreed), charges, fees, or rentals are imposed on traders, shipping lines, concessionaires, licensees or other port users for any delays due to the lockdown in the country.</p>
<p>Delays in berthing, loading or unloading operations, and the evacuation or arrival or cargo because of the imposition of the nationwide lockdown between March 22, 2020, and April 14, 2020, are to be exempted from any of the above charges.</p>
<p>The Ministry directed major ports in the country to exempt or remit demurrage, ground rent over and above the free period, penal anchorage or berth hire charges, and any other performance-related penalties that have been levied.</p>
<p>It added that these orders do not allow them to discontinue operations and that all ports are to remain operational for the entirety of the COVID-19 pandemic, despite the force majeure declarations. The Ministry noted that the force majeure will start from the date of order of the Ministry of Finance and will end when the competent authority orders accordingly.</p>
<p>Additionally, ports were directed to extend deadlines for the completion of any public-private partnership projects under implementation.  Ports are also permitted to waive off all penal consequences on a case-to-case basis.</p>
<p>Recently, Mercom <a href="https://mercomindia.com/shipping-lines-asked-not-impose-detention-charges/" target="_blank" rel="noopener noreferrer">reported</a> that the Directorate General of Shipping (DGS), Mumbai, issued an advisory to shipping lines asking them not to impose any container detention charges on import shipments at Indian seaports to maintain proper supply lines in these turbulent times.</p>
<p>In a recent online survey <a href="https://mercomindia.com/indian-solar-industry-coronavirus-crisis/" target="_blank" rel="noopener noreferrer">conducted</a> by Mercom India Research, almost 70% of the respondents said their business would be affected by over 15% because of the Coronavirus, while 83% of the survey participants expect solar component supply shortages because of Coronavirus. The Coronavirus pandemic is proving to be the solar industry’s biggest challenge this year, and the repercussions are being felt across industries all over the globe. Read Mercom’s in-depth report <a href="https://mercomindia.com/indian-solar-industry-coronavirus-crisis/" target="_blank" rel="noopener noreferrer">here</a>.</p>
<p>Track the latest developments and initiatives taken by the government to fight the economic repercussions of the pandemic in the renewable industry <a href="https://mercomindia.com/mercom-coronavirus-live-updates-clean-energy-india/" target="_blank" rel="noopener noreferrer">here</a>.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Major Ports Asked Not to Impose Penalties and Continue Operations Amid COVID-19 Lockdown

<p>The Directorate General of Shipping (<a href="https://www.dgshipping.gov.in/" target="_blank" rel="noopener noreferrer">DGS</a>), Mumbai, has issued an advisory to shipping lines asking them not to impose any container detention charges on import shipments at Indian seaports to maintain proper supply lines in these turbulent times.</p>
<p>This advisory will be in effect from March 25, 2020, to April 7, 2020. It has directed all lines to not impose any charges over and above the free time arrangement already agreed upon and availed as part of any negotiated contractual terms. It added the decision was purely a one-time-only measure to deal with the disruptions caused by the spread of COVID-19.</p>
<p>While the Ministry of Home Affairs exempted seaports and its operational organizations from the nationwide lockdown to ensure the smooth supply of goods to the country, some delays in the evacuation of these goods have become inevitable because downstream services have been affected.</p>
<p>In light of this situation, some cargo owners have either suspended operations or are facing difficulties transporting goods from the ports and completing the paperwork, leading to the containers being detained due to no fault of their own.</p>
<p>This advisory may not affect the solar industry too much as shipping from China is yet to resume fully. However, the Indian solar industry depends heavily on imports. In the calendar year 2019, India <a href="https://mercomindia.com/solar-imports-declined-exports-surged-2019/" target="_blank" rel="noopener noreferrer">imported</a> solar cells and modules worth $2.17 billion. China was the largest exporter of solar modules and cells to India in CY 2019, with a market share of nearly 78%, followed by Vietnam, Singapore, Thailand, and Hong Kong.</p>
<p>Recently, Mercom <a href="https://mercomindia.com/india-levy-fee-imported-cargo-covid-outbreak/" target="_blank" rel="noopener noreferrer">reported</a> that amid the novel coronavirus (COVID-19) outbreak, the office of the Principal Commissioner of Customs (ACC-Import), has issued a public notice to clear imported cargo. According to the notice, late fee charge will not be levied on those bills of entry on the import general manifests (IGMs) that are filed between March 21 to 31, 2020, or filed late on or before April 3, 2020.</p>
<p>Earlier, India’s Finance Minister Nirmala Sitharaman <a href="https://mercomindia.com/finance-ministry-economic-relief-measures-coronavirus-outbreak/">announced</a> relief measures for taxpayers and businesses as the country is fighting to curb the pandemic. The relief measures were announced, especially on statutory and regulatory compliance matters related to several sectors.</p>
<p>Previously, the Ministry of New and Renewable Energy (MNRE) has <a href="https://mercomindia.com/renewable-supply-disruption-coronavirus-force-majeure/">issued</a> an official memorandum which states that the time extension in scheduled commissioning of renewable projects due to the disruption of supply chains will be treated as a ‘force majeure’ event.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/nithin-thomas-prasad/" class="vcard author" rel="author"><span class="fn">Nithin Thomas</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Nithin Thomas,</strong> Staff reporter at Mercom India<br />
<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" target="_blank" rel="noopener">More articles from Nithin Thomas.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="102" height="102" /><a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">Nithin Thomas</a> is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor&#8217;s Degree in Commerce from Loyola College, Chennai.<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">More articles from Nithin Thomas Prasad</a></div>
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