“The implementation of Safeguard Duty is a respite from the uncertainty witnessed in the recent past. We can now say that domestic manufacturers have a level playing field, which will address the concern of underutilised manufacturing capacity of key national players.
During the initial phase, we anticipate a diversion of approximately 30 to 40 percent of the demand for solar cells and modules towards Indian manufacturers. With time, 70 percent of the total demand will gradually be diverted to domestic players. With large renewable targets, we will see a corresponding increase in the manufacturing activity that will fulfil a significant amount of the county’s demand in an indigenous manner. It also gives an impetus to domestic manufacturers to invest in the latest technologies and R&D, and encourage new companies to enter the solar space.
While there are many concerned voices on the anticipated rise in solar tariff, we believe that in the long run with economies of scale, fluctuations in the module prices will stabilise. Going forward, we do need robust measures in place for anti-dumping. It will not only help save us from becoming a dumping nation for solar equipment but can ensure substantial investments in the sector.”