NEW DELHI: The Centre has scrapped concessional customs duty for solar projects under the project imports scheme, a move that industry players said will put a question mark over the viability of 5,000 MW (mega watt) capacity bid out before 2021 entailing an estimated investment of Rs 25,000 crore.
The revenue department on Wednesday notified the amendment to the Project Imports Regulations of 1986 to end the concessionary import duty for solar projects. The amended norm took effect on Thursday.
The move is expected to make modules costlier by 33-34%, E&Y tax partner Saurabh Agarwal told TOI, adding, however, the government’s intent appears to promote domestic manufacturing.
