Dispute over Safeguard Duty on solar

In 2018, the Government of India imposed a 25% safeguard duty on imported solar panels from China and Malaysia. While the move was aimed at promoting the domestic manufacturing of solar panels and reducing the country’s reliance on imported solar equipment, it has led to a legal dispute between the government and the solar energy sector in India.

The Solar Power Developers Association (SPDA) and the National Solar Energy Federation of India (NSEFI), two major industry bodies representing solar developers in India, have been fighting against the safeguard duty. The associations argue that the duty increases the cost of solar power and makes it less competitive with other forms of energy. They have called for a reduction in the duty or its removal altogether.

The SPDA’s opposition to the safeguard duty has led to a legal dispute, with the association filing a petition with the Orissa High Court challenging the imposition of the duty. The petition argues that the duty is against the principles of free trade and violates the country’s commitments under the World Trade Organization (WTO). The petition also argues that the imposition of the duty is not justified, as domestic solar panel manufacturers have not been able to meet the demand for solar panels in the country.

The NSEFI has also taken initiatives to address the legal dispute over the safeguard duty. The association has been lobbying the government for a reduction in the duty and engaging with domestic solar panel manufacturers to increase their production capacity. In addition, the NSEFI has been working with international bodies such as the International Solar Alliance (ISA) to promote the growth of the solar industry in India.

The legal dispute over the safeguard duty highlights the challenges faced by the renewable energy sector in India. While the government has introduced policies and regulations to promote the growth of the sector, such policies can have unintended consequences. The imposition of the safeguard duty has led to a legal dispute, with the SPDA and the NSEFI arguing that it will increase the cost of solar power and make it less competitive with other forms of energy.

The initiatives taken by industry bodies such as the SPDA and the NSEFI are helping to address the issue and promote the growth of the solar industry in India. Their efforts are crucial for ensuring that India meets its renewable energy targets and becomes a leader in the global shift towards sustainable energy. The associations’ efforts complement each other, and both are working towards a common goal of promoting the growth of the solar industry in India.

Table of legal disputes related to the safeguard duty on imported solar panels in India