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Unlocking Safeguard Duty – Edition 20th July 2020

Indian Cell and Module Market – Current Demand & Supplies

Breaking News is that Director General (Safeguard) has recommended for an extension of Safeguard Duty (SGD-2) on import of solar cells and modules for another one year with tariff rate of 14.9% for first six months and 14.5% for next six months. Additionally, the Govt has been contemplating to impose basic customs duty (BCD) of 20% to 25% on import of solar cells and modules. If both the duties are imposed simultaneously, this would mean total quantum of duties to be 37.88% to 43.63% depending upon final rate of BCD. However, the BCD rate would be applied to all imports of solar cells and modules irrespective of countries whereas SGD & BCD collectively would be applied on China, Thailand and Vietnam. The SGD-2 on Malaysian solar cells and modules has not been recommended in the official note issued by the Director General (Safeguard) this time. Further the global supply chain of solar products has been stabilizing. The world wide solar installations have seen 5% increase over the previous year even under COVID-19 conditions. This shows the potential of solar industry in times to come.     

Imported Supplies

The imported supplies for solar cells and modules would remain under the threat of SGD-2 and BCD during next two weeks or so. Though there is no scarcity of solar cells and modules in country but importers would take a final call for new orders once the smoke of duties is clear in these weeks. The prices of imported solar cells for multi and mono remained stable during the last week where as imported module prices for mono and multi again saw some weakness in prices.   

Local Manufacturing

Besides SGD-2 & BCD, there is another breaking news during this week, is that one of the top Indian solar power developer, Renew Power has announced its plans of entering into solar manufacturing with 2GW capacity of solar cells and modules with an outlay of Rs. 2000 Cr. This would be a significant development at the time when the Govt of India has been pushing Atamnirbhar plans for Indian industry. This move would further make the solar manufacturing sector more exciting. The Govt of India has still not clarified the fate of SEZ solar manufacturing units under BCD regime.     

Demand

The demand for DCR solar cells and modules has seen quite impressive as the various state Govt projects execution have been under progress at quite impressive speed. The private demand is still somewhat lackluster due to Covid-19 impacts during the week. However, corporates with impressive fund surplus have been still showing keen interest in adopting solar power for their home consumption.     

Impact on Solar Cells and Solar Module Pricing

The prices of DCR solar cells have been remained stable in the country due to back to back orders where as prices of DCR 330/335 watt modules remained in the range of Rs. 18.75 to Rs. 20 per watt. The dollar exchange rate is expected to remain in the range of Rs. 75/ Rs. 75.50.  The rates of local non DCR multi 330/335 watt modules by Tier-1 and Tier-2 local manufacturers have seen around Rs. 16 to Rs. 17 per watt whereas non DCR mono PERC 380 watt modules are available in the range of Rs. 18.00 to 18.75 per watt.

See you next week for the next analysis of the prices. Stay at work safely. Best Wishes.     

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Prashant
Prashant
1 year ago

Safeguard Duty will certainly help indian manufacturing sector fight Chinese import

Rahul Sharma
Rahul Sharma
1 year ago

SGD and BCD would help in developing local manufacturing sector in India… Cheers!!

SRINIVAS KL
1 year ago

If governments keep overall duty difference between Cell and Module 5 to 10%, it helps made in India concept and cell and module manufacturers.

Chandresh Jain
Chandresh Jain
1 year ago

Govt must bring clarity on duty structure soon to help make developers and manufacturers create a clear future framework

Advocate Vinod K Sharma
Advocate Vinod K Sharma
1 year ago

This will go a long way in bolstering renewable energy sources and we are proud that Jupiter is at the fore front of this change and charge

Sanju Kumar
Sanju Kumar
1 year ago

Need to increase the Indian made supplies of cells & panels ….basically increase in the home grown capacity to cater annual demand towards JNSM. Another good news is that people have started considering to use solar energy for homes but need the combersome process to be at ease for a common man.