Import Duties May Leave India’s Solar Industry In The Dark


Import Duties May Leave India’s Solar Industry In The Dark

The solar energy sector in India is headed for a major shake-up as the government agreed on July 30 to a recommendation to impose customs duties on imported solar cells and panels.

On July 16, the Director General of Trade Remedies (DGTR) recommended a two-year safeguard duty on solar products, starting with a 25% duty in the first year reduced to 20% and 15% in the following six-month periods.

The decision is meant to protect India’s fledgling solar cells and modules industry from alleged price undercutting by manufacturers in China and Malaysia. However, analysts said the duty will benefit only just a fraction of the production capacity in India while threatening to make nearly 27 Gigawatts worth of under construction projects unviable. A number of legal challenges mounted against the duty add to the uncertainty. Read More

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