Are PLI beneficiaries importing solar panels from China violating the law of the land? Calls for an investigation

To

Shri Bhupinder Singh Bhalla

Secretary (MNRE)

Govt of India

Dear Shri Bhalla,

I understand that the government has given subsidies to solar companies under the somewhat contentious Production Linked Incentive (PLI) scheme. 

Why should profit-earning private companies get the benefit of subsidies, involving scarce public funds, for importing solar panels and assembling them domestically, when funds diverted for such subsidies are more critically needed for investment in public health, education, maintaining food security and supporting employment schemes?

In this connection, I invite your attention to two distressing news reports (https://www.taxscan.in/dri-launches-investigation-against-6-solar-companies-on-rs-1900-crore-customs-import-duty-evasion-allegation/373732/ &  https://www.livemint.com/companies/news/chinese-vendors-dominate-supply-chain-of-indian-solar-pli-scheme-winners-report-11707365855802.html) that suggest that some private companies importing solar panels from China are being investigated by the DRI for possible false declarations and money laundering and those involved in such acts of malfeasance may be also beneficiaries of the PLI scheme.

I request your Ministry to get such instances thoroughly investigated by the DRI and the other investigating agencies and bring the culprits to book, as public funds cannot be allowed to be misused in the guise of the PLI scheme.

Regards,

Yours sincerely,

E A S Sarma

Former Secretary to the Government of India

Visakhapatnam

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