Basic customs duty on solar imports still on the cards: Ministry of New and Renewable Energy
Even though Union finance minister Nirmala Sitharaman did not mention any import restrictions on solar cells and modules to boost the domestic manufacturers, the ministry of new and renewable energy (MNRE) does not rule out the imposition of basic customs duty (BCD) on such items. Addressing the media about the implications of the budget on the renewable sector, MNRE secretary Indu Shekhar Chaturvedi said that “no way we can conclude that BCD will not take place”.
Acknowledging that solar energy has a “huge promise” for India, finance minister Nirmala Sitharaman had said in her Budget speech that “to build up domestic capacity, we will notify a phased manufacturing plan for solar cells and solar panels”. About 50% of the country’s 11 GW domestic solar panel capacity and another 3 GW of cell-manufacturing facilities remain unutilised.
A senior MNRE official said that the “phased manufacturing plan is a kind of policy which includes everything, including BCD”, adding that “we are waiting for some clarification from the department of revenue and we are hopeful to receive that within a day or two”.
