Government's decision of not imposing anti-dumping duty on solar cells would bring down the overall cost of solar power generation by Rs 0.66 per Kwh to Rs 4.86 per Kwh, Parliament was informed today.
The current domestic manufacturing capacity for solar cells is inadequate to meet the current demand and it cannot meet the ambitious expansion plans for solar power in the country, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
She said the absence of anti-dumping proposal would help the development of solar power in the country.
The government has decided not to impose anti-dumping duty on imports fo solar cells, originating in or exported from China, Chinese Taipei, Malaysia and the US, she said adding anti-dumping duty on these four countries alone would not have benefited the domestic manufacturers as imports from remaining countries would have continued.
"As a result the cost of imports has become cheaper by Rs 0.66 crore per MW to Rs 4.86 crore per MW, depending upon the source of imports. Accordingly, solar power would also be cheaper by Rs 0.66 per Kwh to Rs 4.86 per Kwh, depending upon the source of imports," the minister said.
The national solar mission aims to have 20,000 MW solar capacity by 2022. The country's current installed solar capacity exceeds 2,600 MW.
She also said that major expansion is possible only if the price of solar power matches grid parity and can sustain without government subsidies.
During April-August this fiscal, India imported solar cells worth USD 247.06 million. It was USD 711.12 million in 2013-14.
Replying to a separate question, Sitharaman said that the Department of Industrial Policy and Promotion has entrusted ADB for undertaking feasibility study of Vizag-Chennai Industrial Corridor (VCIC).
"ADB has since submitted a draft final report on conceptual development plan of VCIC," she said.
The corridor would help in boosting the country's manufacturing growth.
