Steep import duty on solar cells, modules from Apr ’22
NEW DELHI : The government has decided to impose 40% basic customs duty (BCD) on solar modules and 25% on solar cells from 1 April 2022, in a move that would make imports costlier and encourage local manufacturing.
According to a 9 March 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 1 April 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.
