The Solar Energy Corporation of India (SECI) has cancelled
the projects tendered under the domestic content requirement (DCR) category in
Bhadla Solar Park, Rajasthan; these projects fell under the National Solar
Mission Phase II, Batch 4, the SECI stated
in a release.
The SECI had tendered 100 MW of solar in Phase-III of the
park under the DCR category and 50 MW in Phase-IV. These projects have been put
under the Open category now.
Mercom has previously
reported that the United States had pressed for rapid enforcement of World
Trade Organization (WTO) which it won against India regarding the Domestic
Content Requirements (DCR) for manufacturing solar cells and modules.
Under this batch, 200 MW under DCR category has yet to be
auctioned, while 25 MW has been auctioned in Gujarat. With the recent
development, the remaining 200 MW capacity under DCR category might be in
jeopardy of being cancelled or retendered under Open category. A SECI official
confirmed that in the future there will be no tenders under the DCR category by
“The WTO ruling is finally
hitting home as domestic manufacturers that depend on DCR projects see the
market shrink. With Chinese solar module prices declining heavily over the last
year it has been challenging for Indian manufacturers to compete,” said Raj Prabhu, CEO of Mercom Capital Group.
the loss of the WTO case, India is expected to go ahead and develop already
contracted projects as this ruling was not retroactive. DCR Projects that have
not gone past the letter of intent stage are expected to be cancelled or moved
to open category.