Projecting solar power capacity addition of 48-50 GW between fiscal 2019 and 2023, rating agency Crisil says developer sentiment has been negatively impacted by the lack of clarity on several policy issues and arbitrary bid cancellations. This is contrary to a supportive policy stance from the government.
Over fiscals 2017 to 2019, while previously tendered capacities continued to be commissioned apace, certain risks to future project implementation had manifested. There were frequent bid cancellations, lack of clarity on GST procedures, and cost pressure from the imposition of safeguard duty on imported cells/ modules.
In a statement, Crisil states that while GST clarity was lacking for over a year, with a final decision taken by the GST Council in December, it ended with an increase in taxation.
