Solar industry awaits finance ministry decision on safeguard duty or Basic Customs Duty

The Directorate General of Trade Remedies (DGTR) has recommended extending the safeguard duty on solar panels and cells, scheduled to expire on July 30, by one year. While it is not clear whether the finance ministry will accept the recommendation, it also has the option of acceding to the industry demand for minimum 20% Basic Customs Duty (BCD) on these items to protect domestic manufacturers from cheap Chinese imports.

The government had levied safeguard duty on imported solar cells and modules from China and Malaysia in 2018 for two years. The ministry of power and ministry of new and renewable energy (MNRE) have been keen on introduction of 20% BCD as a long-term solution to curb influx of solar panels and cells from countries like China.
Union power minister RK Singh has said at various forums in the recent months that the BCD will be introduced from August 1.