Solar imports excluded from duty scheme

The government has excluded solar power projects from the list of goods that can avail of a concessional 7.5% import duty under the project imports scheme, a move criticised by solar power developers. The government said the exclusion plugged a loophole that allowed developers to bypass the 40% import duty imposed on solar projects to encourage local manufacturing.

Solar power developers said the decision is a major setback to the country’s solar power capacity addition plan and they might consider legal options opposing the differential treatment as only solar power plants have been excluded.