SEZ solar gear makers fear customs duty hit, pitch for equalisation levy

NEW DELHI: The Centre’s decision to implement a basic customs duty (BCD) on solar equipment imports has caused substantial consternation among a large group of domestic solar gear manufacturers. Some of these say that if the proposal is implemented in the current form, it may lead to the destruction of much of India’s local manufacturing capacity in the area — the exact opposite of what the government intends to do.

According to the power ministry’s proposal, the government will levy a BCD of 15-20 per cent on solar gear in an effort to discourage solar equipment imports, most of which originates from China. This has put Indian solar gear makers located in special economic zones (SEZ) in a bit of a spot, primarily due to the way the law is structured.