Steep duty on solar equipment from April 2022
he government has decided to impose 40% basic customs duty (BCD) on solar modules and 25% on solar cells from April 1 2022, in a move that would make imports costlier and encourage local manufacturing.
According to a March 9 notification from the ministry of new and renewable energy, the idea is to emerge as a leading global supplier of these items, besides meeting India’s requirements locally. The two items, which currently do not attract BCD, will come under it at the specified rates from April 1, 2022. There will be no grandfathering of power projects that are already bid out, considering the one-year period is sufficient to help developers secure the required raw materials in time.
