Monday, May 20, 2013:The World Trade Center’s recent ruling against a case concerning the domestic power requirements for the Ontario State is upsetting India. India has every reason to grieve as a similar case has been filed against the country by the United States. However, the hopes of a favorable verdict are still on since the government believes that the finer details relating to the case are different from the Ontario one.
As Business Line reporters reached senior officials of Ministry of New and Renewable Energy (MNRE), they said that the situation is way different from Ontario. In India’s case, the production is solely meant for government use and this cannot be decided under WTO rules.
To add to the point, the Phase II of the plan proposes to divide the total 750 MW capacity into two, for domestic use and the rest for open use in imported products. The Commerce Department is already analyzing the Ontario verdict.
The officials are already judging the process as to how WTO arrived at the final verdict in the Ontario case.
Earlier this year in February, the US lodged a case with regards to the Jawaharlal Nehru National Solar Mission with the Dispute Settlement Dept of the WTO. The mission proposal mandates the crystalline technology based solar photovoltaic cells to be locally sourced. WTO doesn’t allow members to impose such regulation on the investors.
India has been arguing with the WTO that the acquisition will be through NTPC, and this doesn’t concern the WTO guidelines. Also India is yet not a signatory to the plurilateral agreement that governs the procurement.
