Shares of Borosil Renewables, a solar glass manufacturer and a subsidiary of the Borosil group, witnessed a significant surge in its stock price during today’s intraday trade, climbing 11% to ₹598.65 per share.
This rise came after India initiated an anti-dumping investigation into specific solar glass imports from China and Vietnam, prompted by complaints from domestic industry players.
Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports.
The commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR) is probing the alleged dumping of ‘Textured Tempered Coated and Uncoated Glass’ made or from China and Vietnam, PTI reported today.
The product is also known by various names, such as solar glass or solar photovoltaic glass, in the market parlance.
The report said that an application has been filed by Borosil Renewables on behalf of the domestic industry for the probe and the imposition of an appropriate anti-dumping duty on imports.
If it is established that the dumping has caused material injury to domestic players, DGTR would recommend the imposition of anti-dumping duty on the imports, the report said.
Borosil Renewables is the first producer of solar glass in the country. It is engaged in the production of low iron textured solar glass used in the manufacturing of solar photovoltaic modules in the power sector.
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Power demand has been rising, and solar remains the single largest source of new power capacity additions consecutively in the last 7 years. On February 13, Prime Minister Narendra Modi launched the PM Surya Ghar: Muft Bijli Yojana to provide free electricity to its beneficiaries.
As per the scheme, the central government will provide 300 units of free electricity per month to its beneficiaries by investing ₹75,000 crore. The free electricity scheme was earlier announced by Finance Minister Nirmala Sitharaman in her interim budget speech on February 1.
This would result from the generation of free solar electricity for personal use as well as the potential to sell surplus energy back to distribution companies.
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Going forward, the outlook for solar photovoltaic (PV) installations worldwide appears promising. The Indian government’s ambitious goal to achieve 280 GW of solar power installations by 2030, coupled with initiatives like the imposition of BCD and PLI schemes and preference for domestic solar modules, is driving a continuous increase in demand for solar glass in India.
The European Union’s “Solar Accelerator Program” and Green Deal, aimed at reducing dependence on Chinese imports and promoting local manufacturing, are also fueling the demand for solar glass in European markets.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 16 Feb 2024, 01:18 PM IST