Budget 2018: Solar industry seeks clarity, relief in safeguard duty


Budget 2018: Solar industry seeks clarity, relief in safeguard duty

Concerned over future of the sunrise industry which is facing threat due to the proposed imposition of 70 per cent safeguard duty on import of solar power equipment, sector experts are expecting some breather from the Union Budget 2018-19.

Industry experts believe that the imposition will not only increase the tariff by almost Re 1 but it will put the projects under execution in deep trouble resulting in making them unviable, turning them into non-performing assets.

As per industry estimates, nearly 3000-4000 MW of solar projects worth over Rs 15,000 crore are at high risk, especially when solar cells and modules that account for 60 per cent of the total project cost are either in transit or have been tied-up for.

“The sudden imposition of the duty will put a number of projects that are currently under various stages of development under risk in the near term. More than 10,000 MW of capacity is imported annually and this duty will adversely impact the project’s viability,” CleanMax Solar Managing Director Kuldeep Jain said.

 

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