Power Minister to bat for under construction solar projects; seeks basic custom duty exemption

Batting for solar power project developers, the Union power ministry will seek exemption of the upcoming basic customs duty (BCD) to be levied on the import of solar cells and panels. If approved by the finance ministry, this exemption will provide a relief to about 40,000 mega-watt (MW) of under construction plants which had quoted tariffs without accounting for the rise in capital expenditure stemming from the newly announced BCD to reduce imports from China.

Union power minister RK Singh said that he will meet finance minister Nirmala Sitharaman on Friday to discuss this issue. “I will be insisting on grandfathering of all the projects which have been bid out till the date of imposition of the customs duty,” Singh said on Thursday while addressing a webinar on domestic renewable energy manufacturing hosted by the Confederation of Indian Industry.