The government is considering basic customs duty of around 20 per cent on solar energy equipment to provide an edge to domestic manufacturers and discourage imports, particularly from China.
However, solar energy developers are of the view that basic customs duty (BCD) on solar equipment will be counterproductive for the segment in view of India’s ambitious target of having 100 GW of solar energy by 2022.
“The government is actively considering about 20 per cent basic customs duty on solar equipment because safeguard duty (SGD) on these is applicable till July 29, 2020,” a source said.
At present, 15 per cent SGD is applicable on solar cells. This would be zero or nil from July 30, 2020.
There is no BCD on solar equipment as of now. Once BCD is imposed, it would be applicable on imports from all countries.
