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India Formally Levying A Protective Tax On Solar Modules In China And Malaysia
- Aug 06, 2018 -

India's Ministry of finance has officially ruled on a survey of solar cell safeguards, which will impose a two year protection tax on battery components imported from China and Malaysia, which is expected to increase the construction cost of the India PV project and push up the rate of Internet electricity.

In addition, this announcement shows that nothing in this notice is applicable to the development of China's "nineteenth / 2016 notice" in February 5, 2016, except China and Malaysia.


Notification NO.19 / 20 16 - NO.19 (N.T.)

Low-cost components from China account for nearly 85% of India's solar module demand, according to Bridge To India, an energy consultancy. According to customs statistics, China exported India components to over 9GW in 2017. In 2018 1~6, China's PV module exported to India was about 3.6GW, accounting for 20.1% of the total export volume.

The government of India levied 25% import tariffs on solar cells and components from China and Malaysia to protect domestic manufacturers, excluding batteries and components imported from Indonesia and Vietnam, as they were classified as "developing countries".

However, some Chinese photovoltaic manufacturers and other foreign suppliers have production operations in Indonesia and Vietnam, enabling them to supply solar products in India without import tariffs. Some Chinese manufacturers, such as Longji green energy, have plans to restart their plans to open factories in India.

It is understood that Longji will invest $309 million, including $240 million in construction investment and about $68 million in operating funds. The company plans to help Ande Labin increase its battery and component plant capacity from 500 megawatts to 1 gigawatts. The construction plan for the expansion of the component plant will be completed by the end of August 2019, and the production plant will be put into operation in January 2020.

Appendix: the original announcement of the Ministry of finance of India