(Image source from: WTO rules against India in US solar dispute})
The World Trade Organization (WTO) has ruled against India in solar dispute with the United States, reported Mint that quoted an unnamed commerce ministry official as saying that India planned to appeal the decision. The United States complained about requirements of domestic content in a program intended to ease chronic energy shortages in the third-largest economy of Asia.
The official was quoted by Mint as saying that, “We will appeal against the judgement at WTO’s highest court, the appellate body, which could give us two years’ reprieve. There can also be a bilateral arrangement with the US since it is an important trading partner.”
India expects its power demand to double within coming five years from around 140,000 megawatts today. TO meet the demand the Asian country wants new capacity of 100,000 MW from solar panels, with a minimum of 8,000 MW from locally made cells.
Also read: World’s First Solar Power Airport In Cochin, India
India violated global trade rules - WTO
According to the reports, in a confidential report sent by the WTO dispute settlement panel to New Delhi and Washington, it was said that India went against global trade rules. For solar cells and solar modules, India imposed local content requirements. Besides, incentive policies have been struck down by the country. The incentive policies include subsidies offered for domestic solar companies for manufacturing cells and solar modules. Before the decisions are unveiled to public, WTO typically circulates the decision on disputed to concerned parties.
-Sumana
