2020-06-25
Solar cells and panels import may get costlier

Solar cells and panels import may get costlier

With the view to push domestic manufacturing and curb imports for solar power generating equipment from China the government is planning on imposing basic customs duty on imports on solar cells and panels.

Government sources are mulling imposing a 20 percent BCD on solar equipment imports from China after the existing 15 percent safeguard duty on solar cells and modules expires in July.

A 20 percent BCD on these products was proposed in the Annual Budget, however, the Ministry of New and Renewable Energy (MNRE) clarified that the new duties will not be imposed until the expiry of safeguard duty (i.e. July 29, 2020).

Chinese companies account for 80 percent of solar cell and modules imported in India. In the first nine months of FY 2019-20 (April to December 2019) India imported solar cells and modules worth $1.179.89 million from China.

As per reports, the total value of solar imports in India for financial years FY17, FY18, and was $3,196.5 million, $3,837.6 million, and $2,159.7 million, respectively.