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  • India is going through a solar power boom.

  • A combination of government targets and steeply-falling prices have meant developers

  • are falling over themselves to build huge new solar farms across the country.

  • Last year, one developer set a new record

  • for how cheaply it was willing to build a farm in Rajastan.

  • The problem is that the panel manufacturers like this one, IB Solar,

  • just outside Delhi, have not seen their order book swell quite as rapidly.

  • They are facing competition from across the border in China

  • where manufacturers are selling their goods off very cheaply,

  • because they've simply made too much for their own domestic market.

  • In the last four years, Indian domestic solar manufacturers

  • have gone from making 246 megawatts of capacity every year to over 500.

  • But in the same period of time, imports have increased from 1,275 megawatts every year to nearly 10,000.

  • The reason is simple: price.

  • If a developer wants to buy an Indian-made solar panel,

  • it's going to cost them around 62 rupees per watt of capacity.

  • If they want to buy the same panel from China, it'll cost them closer to 25.

  • Already the US and the EU have taken action,

  • imposing anti-dumping duties against Chinese companies

  • for what they say is selling at below cost price.

  • Now India is proposing to do the same thing,

  • planning an emergency 70% tariff on almost all of its solar panel imports,

  • including those from China.

  • The plan is controversial.

  • Developers say it will push up power prices,

  • and make them less likely to bid for contracts in the future.

  • Smaller manufacturers, like this one,

  • say that by including raw materials under the tariff,

  • it will make panels like this also more expensive.

  • But the largest manufacturers are happy.

  • They say that if the government wants to protect Indian jobs and manufacturing,

  • it needs to take action and soon.

  • Kiran Stacey, Financial Times, Delhi

India is going through a solar power boom.

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