Fate of solar projects hangs in balance; anti-dumping duty may hold key.

NEW DELHI: Sharad Saluja, 30-year-old director of the Rs 1,700 crore New Delhi-based Sterling Agro Industries, better known for its dairy brand Nova, belongs to a generation of entrepreneurs that is willing to risk diversifying into the renewable energy business. He has installed 50 MW of wind power projects and his plans to venture into solar energy will depend on a government decision expected later this week.

Saluja is waiting for August 22, when the ministry of finance is expected to take a final call on whether to levy anti-dumping duty on solar cells imported from China, Malaysia and Taiwan, before he considers bidding for projects in different states. He says anti-dumping duty will make solar power expensive and will prove to be a roadblock for the country's ambitious National Solar Mission as nobody wants to buy costly electricity.

Saluja belongs to breed of young entrepreneurs from high net worth families engaged in sectors such as cosmetics, dairy, hospitality, breweries, automobile, engineering and education that have been venturing into the solar power business in the past couple of years. They include Rahul Munjal from family that set up Hero Moto-Corp, 26-year-old Kartik Raju, son of Sunder Raju who runs Bangalore-based Atria Hotel, and Ratul Puri of Hindustan Power, which has diversified from the family-controlled digital media company Moser Baer.

India has installed close to 2,750 MW of solar power and aims to deploy 20,000 MW of capacity by 2022. The National Democratic Alliance government, which took office in May, had promised to promote renewable energy and is expected to raise this target. According to consulting and market intelligence firm Bridge to India, only about 550 MW of 1,600 MW of ongoing solar projects will take shape if the government decides to impose anti-dumping duty on solar power equipment.

India has installed close to 2,750 MW of solar power and aims to deploy 20,000 MW of capacity by 2022. The National Democratic Alliance government, which took office in May, had promised to promote renewable energy and is expected to raise this target. According to consulting and market intelligence firm Bridge to India, only about 550 MW of 1,600 MW of ongoing solar projects will take shape if the government decides to impose anti-dumping duty on solar power equipment.

Another consulting firm, Gensol, anticipates almost 1,500 MW of solar power projects will be affected if the recommendations of the Directorate General of Anti-Dumping and Allied Duties, under the Ministry of Commerce and Industry, are accepted. The authority in May recommended the imposition of anti-dumping duties ranging from $ 0.11 per watt to $ 0.81 per watt on solar cells, modules or panels and thin films exported to India from China, Malaysia, Taiwan and the US at below their normal value . It said such imports hurt domestic manufacturers. "Developers for significant capacity have not placed their orders to import solar power equipment yet as they are unsure about the anti-dumping duty.

Source : economictimes.indiatimes.com