Thursday, March 20, 2014: India’s solar mission, Jawaharlal Nehru National Solar Mission (JNNSM), has been much in debate as the US had recently filed a complaint at the World Trade Organisation (WTO) against it. The second phase of mission has come under the scanner as India and US will start consultations on mandatory local-buying requirements for certain parts that are used in solar equipment.
The consultations are aimed at resolving the WTO complaint, are scheduled on 20-21 March. It will give India a chance to justify its motive. If the US is not content with the consultations, the country can ask the WTO to set up a dispute settlement panel to for it to fight the case.
US had accused India of discrimination, by way of domestic-sourcing requirements at the WTO, saying that JNNSM violated the norms as they discriminate against foreign firms.
The second phase of the JNNSM was launched last year, and a fresh complaint by US was filed against the phase, which will produce a total of 750 MW solar power, in February this year.
According to a Hindu Business Line report, the power generated by projects under the JNNSM will be purchased by a government agency. Thus, the government of India (GOI) debates that all the equipment purchases automatically come under the category of ‘Government Procurement’. Since, India is not a member of the Government Procurement Agreement of the WTO; the country is much at ease and self resolution to follow the rules laid down for Government procurement by the organisation.
US’ counter debate states that the domestic sourcing obligation on purchase of solar power equipment does not qualify as Government procurement, since the GOI claims to buy power not the solar power equipments.
