Budget proposes a mechanism to impose 20% customs duty on solar cells, modules
NEW DELHI : In what has caught solar power developers in India by surprise, the union budget has approved an enabling mechanism to raise tariffs on imports of green energy equipment such as solar cells and modules.
Once a separate notification is issued, a new duty structure enabling a basic customs duty (BCD) of 20% on cells and modules will come into effect. There was no BCD levied presently on such equipment.
The Indian solar power developers were critical of the move in the backdrop of a tepid interest in India’s clean energy space following a backlash from global investors over Andhra Pradesh government’s decision to have a relook at renewable energy contracts.
