• The Directorate General of Trade Remedies (DGTR), a unit of the commerce ministry

has recommended imposing a 25% safeguard duty on solar cells from China and Malaysia.

• According to the DGTR, the overseas supplies have caused or threatened “serious injury” to domestic manufacturers.

• Under the proposed plan, the safeguard duty would be applicable for two years, India’s Directorate General of Trade Remedies, said in the conclusion of its findings.

• The tariff would be lowered to 20% for the first half of the second year and 15% for the second half.

• “Imposition of safeguard duty in this case would be in public interest because it will prevent complete erosion of manufacturing base of solar industry in the country,” the DGTR said in the recommendation.

• As per the Crisil report, Currently 85-­90% of solar modules used in India are imported from China and Malaysia.

• According to analysts, as it will spur domestic manufacturers of these components, but will also raise costs for projects planned on cheaper, imported components, by about 15-­20%.

• The Solar Power Developers Association, in its argument to the DGTR, said the duty would put more than Rs.1 lakh crore worth of solar power projects in jeopardy, as firms had committed to ongoing projects of about 27 GW.

• The boon is the opportunity it provides the domestic module industry to flourish. The bane is the duty could raise capital costs for solar projects based on imported modules by 15­-20% [at current prices].

The Hindu, LiveMint.