Basic customs duty on solar cells, modules to push tariff upwards, cost Rs 900 cr to discoms annually: Ind-Ra

The government’s decision to levy basic customs duty (BCD) on solar cells and modules from April 1 will lead to increase in solar power tariff rates and create additional risk for domestic manufacturers in incurring significant capex, according to India Ratings and Research (Ind-Ra). Further, it would reduce the overall attractiveness of solar projects to off-takers and finally end-consumers, the agency said in a statement. “The imposition of basic customs duty (BCD) on solar cells and modules with effect from April 1, 2022 will lead to an increase in solar tariffs on account of a rise in the overall project costs,” Ind-Ra said.