Two Chinese Companies Blacklisted In India

India’s MNRE Issues Advisory Against China’s CSUN Group Companies-CSUN Trading (Hong Kong) & CEEG (Shanghai) Solar Science Technology-For Defaulting On Module Supply Contracts
09:13 PM (Beijing Time) - 03. April 2019
Photo India Flag IMG_1597

Acting on the complaint against CSUN Group, India's MNRE said it will not tolerate breach of valid contracts by foreign companies in view of the timeline of 2022 it is looking at for meeting its 100 GW installed solar PV capacity target. (Photo Credit: Embassy of India Beijing, China)

Key Takeaways

  • MNRE of India has taken a tough stance against China’s CSUN Group issuing advisory for all stakeholders in the Indian solar industry
  • CSUN Trading (Hong Kong) and CEEG (Shanghai) Solar Science Technology are the offering companies that have been accused of not supplying modules on time and not returning advance amount
  • The companies were found to be ‘high risk companies’ with more than 160 court cases against them
  • MNRE has advised stakeholders to verify standing and reputation of Chinese companies with the Indian Embassy in Beijing or the Consulate General of India in Shanghai before placing any orders

The Indian Ministry of New and Renewable Energy (MNRE) has issued an advisory against 2 Chinese PV module suppliers, warning developers from dealing with them. The offenders are accused of not honouring terms of module supply contracts signed and not returning advance amount paid.

Companies in question are M/s CSUN Trading (Hong Kong) Co. Ltd., and M/s CEEG (Shanghai) Solar Science Technology Co. Ltd., both operating out of China. On escalating the matter to the Chinese authorities via the Consulate General of India, Shanghai under the Ministry of External Affairs, it was found these Chinese companies are ‘high risk companies’ and have more than 160 court cases against them, mostly for breach of contract with millions of RMB in compensation amount.

Basis this, MNRE has advised all solar industry stakeholders including lending institutions to deal with the companies at their own risk. “All concerned stakeholders are also advised to contact the Embassy of India in Beijing, China and or the Consulate General of India, Shanghai to verify standing and reputation of various Chinese companies before placing any orders so that such incidences can be avoided,” reads the advisory note.

A representation of complainants from Acme Solar, RattanIndia and Refex Energy brought to the notice of the government that the said companies had been involved in a similar case in January 2019 for which Singapore International Arbitration Centre had settled the matter in favour of an Indian company. This issue involved CSUN and CEEG (both belong to the same group), with CSUN acquiring a 100% stake in CEEG (Shanghai) Solar Science & Technology Co., Ltd and CEEG (Nan Jing) New Energy Co., Ltd in 2010, according to Mercom. Taking cognizance of the fact, the ministry said in view of the country’s 100 GW of solar power target by 2022, ‘such breach of valid contracts and not supplying modules on time by foreign companies cannot be tolerated’.

Indian business daily The Economic Times reported ACME Solar had placed an order for 30 MW, RattanIndia’s Yarrow Infrastructure had paid for 20 MW and Refex Energy was seeking 40 MW of capacity from CSUN.

MNRE also advised all concerned stakeholders to verify standing and reputation of various Chinese companies before placing any orders so as to avoid a repetition of such incidences. Mercom India Research says the Indian companies are also holding parallel negotiations with CSUN to supply the modules.

CSUN or China Sunergy has an annual solar module production capacity of 1.2 GW with more than 3 GW of capacity sold, according to information on its website. In February 2017, it announced plans to set up its first module fab in the US (see New 400 MW Sunergy Module Facility In Sacramento).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani