India government rejected requests from the Ministry of New and Renewable Energy (MNRE) to cancel tariffs on solar panels imposed last year, according to the minutes of a meeting held earlier this month. Therefore, MNRE declined the solar developer’s request that the devices should continue to exempt from tariffs.

123 - India Government Unlikely to Scrap Customs Duty on Import of Solar Panels


Generally, said by an expert, according to the new policy, solar developers have to pay levies that add up to about 10%, which reverse the solar tariffs declining history in the past three years. But developers who had quoted tariffs based on the previous policy may get relaxed, since it was based on zero-duty calculation before.

Referring to the meeting minutes, finance secretary Hasmukh Adhia and the government claimed that the change will be in force and developers have to adjust their strategy.

Referring to the meeting minutes , Adhia says “Policy intervention in the form of customs duty exemption may not always be the ideal way to promote growth of solar power generating industry in the country, particularly when the import is also being investigated by DGAD (Directorate General of Anti-Dumping) for possible dumping, besides safeguard protection.” However, he ask for a list of developers who had already quoted tariffs based on the previous policy and related solar projects, in order to protect their original benefits.

Last year, CBEC ended its policy of exempting duty from importing solar panels and modules, moreover, CBEC imposed a custom duty of around 10% on it. The main reason of it is to protect domestic solar manufacturers. According to statistics, almost all of solar panels and modules which used in Indian solar projects are imported from manufacturing giant, China, and Malaysia. Importing solar equipment are 30% cheaper than locally made ones. The ministry noted that DGAD launched a “anti-dumping investigation into imports of solar panels and modules from China, Malaysia and Taiwan” based on complaints from local manufacturers.

Recently the DIPP secretary highlighted the importance of made in India, and said it is necessary to implement preferential policies to promote India’s domestic solar panels and modules manufacturing, in order to achieve the imported level.




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