India to levy 25 percent customers duties on imported solar cells and 40 percent on modules
Post date: 11/03/2021 - 08:57
The Ministry of New and Renewable Energy (MNRE) has announced basic customs duty (BCD) on imported solar cells and modules starting April 1, 2022. The BCD on solar modules will be 40 percent, and solar cells are at 25 percent.
»Presently, India's solar sector, just like in any other country of the world, is heavily reliant on imports of solar equipment,« says the ministry in an announcement. The Government has also noted instances of certain countries dumping solar cells and modules »to kill the nascent domestic industry,« because of which India had to impose Safeguard Duties. »Considering India's huge solar targets and that electricity is a strategic sector of the economy, India needs to develop domestic solar manufacturing capacities and reduce its dependence on imports to avoid disruption in future,« announced minister Raj Kumar Singh. The directive to implement BCD is part of the Atmanirbhar Bharat initiative to scale up and support domestic manufacturing.
India has set a target of 175 GW of installed renewable energy (RE) capacity, including 100 GW of solar power, by 2022. India has also set a target of 450 GW installed RE capacity by 2030. As per the Central Electricity Authority's Optimum Energy Mix report, the electricity requirement of the country by 2029-30 will be 817 GW, including the 450 GW from renewable energy sources, out of which 280 GW would come from solar energy. To achieve the target of 280 GW, around 25 GW of solar energy capacity is needed to be installed every year, till 2030.