The investigation the DGTR follows an application filed by Chemplast Cuddalore Vinyls, DCM Shriram and DCW Ltd.
The applicants have alleged that China is subsidising its PVC Suspension Resin makers and those companies are dumping the goods into Indian markets at cheaper prices, which is impacting domestic manufacturers.
The Directorate General of Trade Remedies (DGTR) is an arm of the commerce ministry.
“On the basis of the duly substantiated application by the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted by the applicants substantiating the existence of subsidization and consequent injury to the domestic industry, the authority hereby initiates an anti-subsidy investigation,” the DGTR has said in a notification.
The directorate will determine the existence, degree, and effect of the alleged subsidisation and recommend the amount of countervailing duty, which, if levied, would be adequate to remove the injury to the domestic industry.
The applicants have alleged that the producers/exporters of the goods in China have benefitted from the subsidies provided at various levels by the government of China. Meanwhile, in a separate notification, the DGTR said that it has also started an anti-absorption investigation of the anti-dumping duty imposed on imports of a Chinese herbicide, Glufosinate and its salts.
Superform Chemisuies, UPl Ltd, Astral Life India, United Phosphorus (India) LLP and UPL Sustainable Agri Solution have filed an application before the DGTR, alleging absorption of anti-dumping duty imposed on the imports from China.
“The authority, hereby, initiates an anti-absorption investigation to determine the existence and effect of absorption of the anti-dumping duty on imports of the product under consideration by the producer/exporter from China and to recommend modification of the quantum, or form of the anti-dumping duty,” the notification said.