Capacity addition in solar energy sector has slowed down on account of lack of clarity on several policy issues and arbitrary bid cancellations, casting shadow over developer’s sentiment, a report said. In wake of delayed capacity additions, development of the solar energy sector has constrained, CRISIL Research said in a report.
“There were frequent bid cancellations, lack of clarity on GST procedures, and cost pressure from the imposition of the safeguard duty on imported cells/modules. While, GST clarity was lacking for over a year with a final decision taken in December by the GST council, it ended with an increase in taxation compared to what was expected by the industry,” the report noted.
