Solar equipment manufacturing: More clarity is needed on the agenda

Even as the government seeks to raise the solar equipment manufacturing capacity in the country through the Atmanirbhar Bharat plan, performance-linked incentive (PLI) scheme, and imposition of high customs duty from April next year, the industry is in a state of flux due to the second Covid-19 wave and uncertainty over the recent policy changes. There is lack of clarity over the nine-month period between July 31, 2021, when the safeguard duty regime comes to an end, and April 1, 2022, when the Basic Customs Duty (BCD) takes effect. This has made manufacturers and EPC contractors hesitant to go ahead with expansion of capacity and place orders for modules, respectively.