As DGTR Recommends Extension of Duty on Solar Glass, Borosil Renewables To Benefit

Anti dumping duties on Solar glass, first imposed in August 2017 for 5 years, are likely to continue for another two years, as the investigation arm of the commerce ministry, the Directorate General of Trade Remedies (DGTR), has recommended for continuation of anti-dumping duty on it for another two years. While the move seeks to protect domestic producers from harm, the market remains a monopoly for Borosil Renewables in India currently. Even Borosil cannot meet market demand for now despite doubling capacity to 5 GW, and with production of modules ramping up, India is likely to keep importing solar glass in significant quantities for the next two years too.

The DGTR notice states that anti-dumping duties must be continued on ‘textured tempered and un-coated’ glass from China.

“The designated authority considers that it is appropriate to recommend continuation in anti-dumping duty on imports of subject goods of the subject country for a further period of 2 year,”, the DGTR notice states.

The directorate has recommended duties in the range of USD 192.82 per tonne and USD 302.65 per tonne, based on the source manufacturer from China. The final call on imposing the duty will be taken by the finance ministry.

The DGTR has also stated that in the event of allowing the duty to lapse in July, there is a high likelihood of dumping of the goods in “significant volumes” and consequent injury to the domestic industry.

The complaint for anti dumping duty and investigations have been filed by Borosil Renewables Ltd all through the period, including in this instance, for a sunset review of anti-dumping investigation.

With the duty protection, Borosil Renewables has turned around to not just double capacities, but also planned for a further capacity jump and also found the strength to acquire a manufacturer in Europe. In fact, the firm has set itself a target to be the largest non-Chinese manufacturer of solar glass by 2025, when its key expansions will be in place.

In March this year, DGTR had also imposed duties in fluoro backsheet imports.

With the BCD regime also activated from April, and a 20% import duty on solar inverters too, in effect the whole solar supply chain in India now has significant levels of protection for domestic manufacturing to step in and fill the gap. The challenge for developers of course is that this is driving up costs, at a time when the tender system has kept increases down to a bare minimum, forcing most to lower their return expectations.