Inconsistent government actions lead to negative developer sentiments in the solar power sector, thereby slowing down the capacity addition momentum in the sector, says a report of Crisil.
While the solar power sector is expected to add 48-50 GW of capacity during FY2019 and FY2023, certain risks to future project implementation have manifested. Developer sentiment has been negative due tofrequent bid cancellations, lack of clarity on GST procedures, and cost pressure from the safeguard duty on imported cells/modules, which is contrary to a supportive policy stance from the government, it said.
While GST clarity was lacking for over a year with a final decision taken in December by the GST Council, it ended with an increase in taxation compared to what was expected by the industry.
