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India to respond to US WTO notice on domestic sourcing rules under National Solar Mission

India has said it will respond to the United States’ notice challenging the domestic sourcing requirement in its National Solar Mission in 10 days’ time as stipulated under the rules of the World Trade Organization. The US, on Wednesday, filed an official dispute against India at the WTO claiming that the domestic sourcing rules flouted […]

India has said it will respond to the United States’ notice challenging the domestic sourcing requirement in its National Solar Mission in 10 days’ time as stipulated under the rules of the World Trade Organization.

The US, on Wednesday, filed an official dispute against India at the WTO claiming that the domestic sourcing rules flouted global trade norms. It has asked for consultations with India on the matter.

“Our Mission in Geneva has been delivered a notice under Dispute Settlement Understanding that the US has sought a consultation in respect to domestic content policy of National Solar Mission. According to the laid-down procedure, India has to respond within 10 days. We have received the notice and will respond within the prescribed time period,” said Rajiv Kher, Additional Secretary, Commerce Department.

On the basis of the consultations that the US has with India, it will decide whether it wants to take the dispute further by asking for a dispute settlement panel to settle the issue.

India’s national solar program required solar energy producers to use Indian-manufactured solar cells and modules, which in fact put foreign solar products at a disadvantaged position. India has favoured its own solar products since Jan 11, 2010, when it launched national solar program. India also promises solar energy developers participating in the program that the government will buy a certain amount of solar power at a highly subsidized tariff rate, provided that they use Indian made solar equipment instead of imports.

Consultations are the first step in the WTO dispute settlement process. Under WTO rules, if the matter is not resolved through consultations within 60 days, the accuser may request the establishment of a WTO dispute settlement panel.

The US has now placed six complaints against India at the WTO, and while India has eight against America.

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    Wind energy sector in India

    Wind energy sector in India is all set to add over 5,000 MW generation capacity per annum by 2015, a top official of the Indian Wind Turbine Manufacturers Association has said. “With the availability of new technology through powerful and taller masts, the total potential can be pegged at about 1.2 lakh mw,” said D […]

    Wind energy sector in India is all set to add over 5,000 MW generation capacity per annum by 2015, a top official of the Indian Wind Turbine Manufacturers Association has said.

    “With the availability of new technology through powerful and taller masts, the total potential can be pegged at about 1.2 lakh mw,” said D V Giri, Chairman of the IWTMA here.

    He said the cost of production of a MW power would be Rs 5 to 6.5 crore which is much cheaper than the solar energy.

    According to the data supplied by the association, the country today has about 11,000 MW of installed wind energy capacity and the utilisation (plant load factor) is between 15 to 20 per cent.

    The association with 13 wind turbine and related equipment manufacturers has also been lobbying for policy reforms in expanding the wind energy generation.

    According to Giri, 1,485 MW capacity was added to the sector in 2008-09, and in 2009-10, it was about 1,576 MW.

    During the current year, the industry hopes to see an addition of about 2,000-2,200 MW capacity in this year.

    Wind energy developments in the 20th century

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