New Delhi: The International Solar Alliance Summit (ISA) held in New Delhi recently with the superior objective of combating the menace of climate change and to promote the use of solar energy. It was also an event targeted at looking for other opportunities that the global energy sector could possibly provide to New Delhi.
Solar energy offers tremendous possibilities for growth and development, and domestic manufacturers and associations are looking to expand India's footprint in the long term. At present, the market and current beneficiaries are focused on short-term gains.
Representatives of 120 countries took part in the ISA Summit. Half were signatory countries and the other half were nations aiming to be prospective ISA members.
The launching of the ISA jointly by French President Emmanuel Macron and Prime Minister Narendra Modi not only furthered Paris Agreement on Climate Change objectives but also forged another bilateral strategic bond between Paris and New Delhi, analysts and experts maintained.
With the Indian government clear in its desire to manufacture solar panels that are cheaper than what is being offered by China at present, to meet domestic demand, solar manufacturing associations across the country are hopeful.
Opportunity isn't the only fact backing the decision to levy the safeguard duty. If, in fact, the duty is not imposed, then there will be direct, immediate and long-term implications. Most government and private investments in solar manufacturing reportedly amounting to Rs. 11,000 crores are in danger of becoming non-performing assets.
While the country and domestic solar players debate over the norms and the status quo of the market, the Chinese manufacturing juggernaut continues to maintain a leadership position on solar products, creating a scenario where the domestic industry in India stays dependent in terms of price, demand-supply ratio and import trade-offs presumably for some more time.