Tepid sentiment among developers is likely to weigh on solar power capacity addition. The sentiment has been hurt by a lack of clarity on several policy issues and arbitrary bid cancellations, which is contrary to a supportive policy stance from the government, a study by CRISIL Research says.
According to the study, solar capacity is set to be augmented by 48-50 Gw between FY19 and FY23.
Between FY17 and FY19, some risks to implementation of future projects surfaced though projects were commissioned apace.
“There were frequent bid cancellations, lack of clarity on GST procedures, and cost pressure from the imposition of the safeguard duty on imported cells/modules. While, GST clarity was lacking for over a year with a final decision taken in December by the GST council, it ended with an increase in taxation compared to what was expected by the industry.
