The Commerce Ministry has recommended anti-dumping duty on solar cells imported from the US, China, Malaysia and Chinese Taipei.
The penal duties are in the range of $0.11 per watt of power produced to $0.81 per watt of power produced.
The recommendation made by the Directorate General of Antidumping Duty in its final findings will now be vetted by the Finance Ministry.
If implemented, the measure would come as a big relief to domestic solar cell manufacturers who have been either forced to shut down operations or were producing below capacity due to competition from cheap imports.
In its findings, the DGAD said that it was established that the products were being dumped (sold below normal value) causing injury to the domestic industry.
Duties on Chinese, US products
Anti-dumping duty proposed on Chinese products are highest ranging between $ 0.64 per watt and $ 0.81 per watt of power produced.
Anti-dumping duty proposed on US manufacturers range from $ 0.11 per watt and $ 0.48 per watt of power produced.
According to the Indian Solar Manufacturers Association, more than 70 per cent of the installed PV capacity is idle in the country and hundreds of employees have been laid off.