Indian Solar Industry

1). Indian Solar Companies are exporting, so quality issue with good company is not an issue. Yes, the pricing is a big question like many roof top solar projects. Indian Solar Manufacturers need to understand the following, if shutting the shop is the answer, after getting interest free Initial Public Offer money from Share market, subsidies and Depreciation benefits, without creating jobs, but, promoters are getting rich... how and why Indian Government has to support??

2). Capitalistic countries or even china did not show mercy to solyndra or LDK or Suntech, sun power, many european cos etc.. Why Govt of India shall show such favour?

Interestingly PSU BHEL is going to set up a huge facility at Gonda /Bhandara, near Nagpur. Hence, we need to raise alarms... Government money will be at stake...New units should not be installed to please any Industry Minister at public costs through Public Sector Undertaking mechanism...

India shall take back all the subsidies or tax rebate schemes like AD as these units took tax advantages, but, no job creation or simply asset creation etc..

Indian Finance Minister said: Rich Promoter and Sick Company is not acceptable

Business models must be put to risk assessment before the lending, agencies or IPO listing agencies must take note of their responsibilities etc.

3). a). What all government schemes and their advantages are enjoyed by these solar manufacturers all these years in terms of numbers vis-a-vis capacity created and actually sold including exports.

b). The Capital subsidy, SEZ benefits, Accelerated Depreciation booked on their balance sheet etc must be clarified by these business entities.

c). Despite enjoying all these benefits from the Government, if these INDIAN units can not be competitive, then, something is seriously wrong with them or the High interest rates despite the fact of Depreciated machinery (i.e overheads must be less by now for these Indian Industry).

d). No orders due to Gujarat or other states permitting to import shall not be the excuse. It should be based on the business model and financial model, hence, MNRE needs to ask for these details even to allow 250 MW. Transparency will make these industry to perform better and if need be an Interest subsidy can be proposed only after realization of sales (not on inventory) by each solar supplier. This is to retain jobs in INDIA. However, this should not continue for long, but, only for two years period. Tax rebate, may be a challenge as everyone would be on the toes.... but, needs a pragmatic approach after declaring such numbers to public after asking these manufacturers to give away the tax savings made on account of Accelerated depreciation or SEZ benefits or 30% Capital Subsidy on an unwanted capacity expansion etc...just to avoid paying taxes due to accelerated depreciation i.e only increasing the assets, now, again fail due to good competition from abroad.....Many of these solar companies are able to get cheaper loan based on land and buildings, so, the business model, forex fluctuation risks, poor raw material cost controls are due to manufacturing operations, for which government shall not be answerable.

However, Government can ask for these details in writing before even accepting for 250 MW capacity too.

4).a). No compromise on Quality and Delivery of the solar modules and inverters, if procured from Abroad or locally with replacement warranty and post-sales support.

b). Price also has to be matched till the solar project site location including all taxes and duties, if procured from Abroad or locally procured.

c). Due to high cost of borrowing and huge financial loss on which these Indian units are dwelling, what government can offer is that: The interest subsidy to match the amount of solar panels supplied by the Supplier with legitimate invoice and receipt from the Buyer of having received the good quality solar product.

d). Government can waive off the local taxes to match the imported solar Panels or Inverters, when such comparisons are transparently made after the ex-works supply (excluding the transportation and its service tax).

e). Thus the local solar manufacturers are protected from the Tax burden or Interest load on high financing cost. For sure, government can't pay for old stocks, inefficient methods of production or import fluctuation of raw materials of these solar module or inverter manufacturers..

f). Manufacturers have to be given an opportunity to prove their good manufacturing capabilities, good procurement capabilities, good quality delivery on time. The Taxation moderation and the interest burden due to high working capital are reduced due to interest subsidy, less applicability of Excise duty, or VAT or such local taxes to match the Imported Price. So, more jobs in INDIA due to such government action.

g). What Solar Manufacturers should not get into foul play is to always ask for tax rebate, which is a great loss (if imported, government wont get less tax or no tax loss due to high rebate), but, loss of jobs will be a great GDP loss or social unrest.

h). If the solar manufacturers can show their price estimation with justification on what interest subsidy they want from Government (the same can be given for two years from National Clean tech fund to save Indian Industry). But, the 30% Capital subsidy is already eaten away by these solar manufacturers, SEZ benefits have also been enjoyed by these solar manufacturers, so, what more support needed must be shown on papers vis-a-vis low interest loans available from abroad, low cost materials etc.Forex fluctuation risk must also be shown to address properly, instead of asking for Anti-dumping duty.. why cry after enjoying all the benefits and still not competitive?? Play a fair game with such paper for many learned to comment and write to the government..and to save jobs in INDIA.