Bharat Heavy Electricals Ltd. (BHEL) is looking to discourage use of imported solar equipment by levying duties to safeguard the domestic manufacturing industry, which is suffering owing to the cheap imports coming from countries like China and US.
BHEL’s move comes against the backdrop of government’s recent decision to slap higher levy on imported power equipment, which is aimed at providing an opening for local producers in the country. “The domestic (solar cell manufacturing) industry has to be given that protection otherwise cheaper imports will come and domestic industry will close down,” said B P Rao, chairman and managing director, BHEL.
The company has filed the case through its parent ministry, Heavy Industries and Public Enterprises Ministry, which is expected to take up the same with the Ministry of New and Renewable Energy.
According to BHEL, solar equipment from some countries are entering the country at prices lower than their market value, which heavily affect the domestic players.
“It is against those industry level practices, the countries which are doing this is a violation of the WTO provision itself, if they are causing harm by deliberately giving prices which are lesser than the costs, it hurts any industry,” Rao said. He, further asserted that the duty would act as a kind of safeguard against cheap imports as currently there is no duty on imported solar power equipment.
Among other diversification plans, BHEL aims to invest Rs 20 billion for manufacturing solar equipment such as silicon wafer, solar cell and solar module.
