Shadow casts over Modi govt’s ambitious solar target as capacity addition slows down, says report

Capacity addition in solar energy sector has slowed down on account of lack of clarity on several policy issues and arbitrary bid cancellations, casting shadow over developer’s sentiment, a report said. In wake of delayed capacity additions, development of the solar energy sector has constrained, CRISIL Research said in a report.

“There were frequent bid cancellations, lack of clarity on GST procedures, and cost pressure from the imposition of the safeguard duty on imported cells/modules. 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,” the report noted.