Boston, MA 06/06/2014 (wallstreetpr) – It would not be business as usual for First Solar, Inc. (NASDAQ:FSLR) in India if a government agency gets its way with the antidumping claims against the company. When the U.S. imposed steep import tariffs on Chinese solar products, First Solar and its U.S. peers celebrated, and shares surged, however, the company is also facing a potentially complex situation in India.
First Solar and its peers in China, Malaysia and Taiwan, are accused of dumping their products in India by offering them at prices below the costs, thereby hurting homegrown manufacturers. However, the company is up in arms against the claims and this week it moved to court to stop a recommendation for stiffer duties on its solar-panels.
Case deferred
The company moved to a high court in Delhi to challenge the duty recommendations. The court deferred the hearing of the petition to July 7. However, the court also questioned the company’s hurried filing for a petition yet the government had not finalized the antidumping duties against it.
The India Finance Ministry has about three months to make the final decision on the antidumping issue as recommended by the Directorate General of Anti-Dumping and Allied Duties. If history is anything to guide, the Finance Ministry rarely rejects the agency’s recommendations.
Promoting local manufacturers
According to the Indian Solar Manufacturers Association, a body that represents local solar companies, tightening duty noose around First Solar, Inc. (NASDAQ:FSLR) and its international peers operating in India would be in the best interest of local manufacturers.
India in 2010 launched a program aimed at boosting the country’s energy capacity through solar projects. The country targets solar-generated power to make up at least 5 percent of its energy capacity by 2020. Currently, solar contributes about 1 percent of the country’s energy mix.
Therefore, a huge opportunity in India’s solar energy sector is one reason First Solar, Inc. (NASDAQ:FSLR) seeks favorable business terms for its operations in the country. First Solar’s production capacity, technology and reputation put it head and shoulder above many of its rivals in India as well many other markets around the world.
