A grouping of solar water heater manufacturers today demanded that the government immediately pay them Rs 350 crore in arrears related to unpaid subsidies.
The pending subsidy includes Rs 50 crore for 2012-13 and around Rs 300 crore for the last fiscal, according to Solar Thermal Federation of India (STFI).
"The industry is on death bed. It is Rs 800-crore industry," STFI Secretary General Jaideep Malaviya said.
As of now, arrears have gone up to Rs 375 crore, he added.
To promote solar energy, the Ministry of New and Renewable Energy (MNRE) had launched a programme under which 30 per cent subsidy would be provided to solar water heater manufacturers for every unit sold.
The subsidy scheme comes under the Jawaharlal Nehru National Solar Mission (JNNSM).
Malaviya claimed that subsidies could touch Rs 500 crore in this financial year as the market for solar water heaters is expected to see a boom.
"The industry is on the verge of shutdown. Government immediately needs to set deadline of setting off the pending claims," Malaviya said.
The Federation has taken up the issue with the government.
"Our expectations from the government are that first all outstanding dues be paid and secondly there has to be anti-dumping duty on import of low quality systems...," STFI Chairman Mangal D Akole said.
He also stressed that subsidy should be given only to locally-made solar water heaters.
