Recently, the United States Department of Commerce (USDOC) preliminarily determined that countervailable subsidies are being provided to producers and exporters of utility scale wind towers (wind towers) from India. In coming to the conclusion, the USDOC has examined and countervailed more than 50 Central Government and State Government schemes such as Duty Drawback, EPCG, MEIS, Interest Equalization Scheme, SHIS, Advance Authorization, EOU & SEZ schemes, State Government Industrial Policy schemes, Electricity Duty exemptions by various states, etc.

Interestingly, barring one entity which received a subsidy rate of 3.74%, the USDOC has applied ‘adverse facts available’ for others and determined punitive subsidy rate of 397% by noting that the companies as well as GOI failed to respond to the questions relating to alleged subsidy programs. The USDOC will now conduct final phase of the investigation and is expected will come out with similar results.

The difference in subsidy rates underlines the importance of participating and providing requested information to the Authority in a time bound manner.

USDOC preliminary determination on Wind Towers