BENGALURU: The government is likely to withdraw customs duty concessions for wind-turbine components to encourage the use of local equipment and reduce imports from China and other countries, people familiar with the development said.
The withdrawal is expected to start in April 2021 and may be phased out completely in a year.
Unlike the solar energy sector, where about 90% of the modules come from China, 80-85% of wind-turbine manufacturing takes place in India. However, some vital parts for setting up wind power projects are imported, mostly from China. The ministry of new and renewable energy is now nudging wind energy equipment makers to produce these parts domestically. “MNRE has examined which components are entering India and from where. Several rounds of discussions have been going on. It realised that most of the components are coming from China because it’s cost-competitive,” said one person on condition of anonymity.
