The US Commerce Department said it found “critical circumstances” in its investigations into companies such as Mundra Solar Energy, Mundra Solar BV, COA and Premier Energy.It added that the liquidation suspension will apply to shipments for up to 90 days before the order is published.
The industry is pushing back, calling the results flawed
India’s solar industry criticized the decision, with Subrahmanyam Pulipaka, CEO of the National Solar Energy Federation of India (NSEFI), saying, “The findings of the investigation appear to be fundamentally flawed and without any rationale.”He added that NSEFI has initiated formal representation to challenge the ruling, according to ET.Amit Manohar, secretary general of Indian Solar Manufacturers Association (ISMA), said the industry will challenge the move further. “We will appeal this through the final decision and ITC proceedings, and we remain optimistic of a positive outcome,” he said.
Exports already affected by the high customs burden
The latest duties add to the existing countervailing duty of over 125%, taking the combined tariff burden on Indian solar exports to over 200%, making shipments to the US unviable, industry officials told ET.
“With this kind of tariff, Indian units are effectively banned from the US market,” an industry official said.
Diversification mitigates the immediate effect
Despite the high tariffs, exporters have already begun shifting focus to alternative markets such as Europe, West Asia and other emerging regions over the past few years, limiting the immediate fallout.This development comes at a time when India and the United States are negotiating a bilateral trade agreement, having recently concluded a three-day round of talks in Washington.Waaree Energies shares fell 2.7% to Rs 3,320 on the BSE, while Vikram Solar shares fell 2.3%. However, Premier Energy recovered from its early losses to close 1% higher.