Basic customs duty up to 40% to be levied on solar imports from April 1 next year

In a move that will provide respite to domestic manufactures, a basic customs duty (BCD) on solar imports up to 40 per cent is set to be levied from April 1, 2022.

A 40 per cent charge will be imposed on solar modules, while cells will attract 25 per cent. Already bid-out projects will not be grandfathered in, the Ministry of New and Renewable Energy (MNRE) notification clarified.

“Considering India’s huge solar targets and that electricity is a strategic sector of the economy, India needs to develop domestic solar manufacturing capacities and reduce its dependence on imports to avoid disruption in future,” said the notification. ET has reviewed a copy of it.