India challenges discrimination against US solar cell imports

Will respond this week to charges of “forced localization”.

India will respond to the World Trade Organization on a US complaint that alleges discrimination by New Delhi's National Solar Mission against American solar products.

The National Solar Mission is a major initiative by India and state governments to promote ecologically sustainable growth while addressing India’s energy security challenges.

India said the US has sought a consultation in respect to the domestic content policy, described by the US as “forced localization,” of the National Solar Mission.

The US Trade Representative alleges that India's programme appears to discriminate against US solar equipment by requiring US solar energy producers to use Indian-made solar cells. The US further alleges that India is offering subsidies to developers who use domestic equipment.

The US claims this forced localization restricts US exports to India.

According to India’s Ministry of New and Renewable Energy, the issue raised by the US relates to only about 350 MW of solar capacity in the national solar mission.

It said India already has an installed capacity of some 1,200 MW. About 1,000 MW is in the pipeline and some 2,000 MW will be bid out. The ministry noted that many orders went to US companies during the award of last two batches under the solar mission. The forced localization issue is the latest in a list of disputes between India and the US in the WTO.