SEZ Solar Units Hit By Blind Spot In Safeguard Duty


SEZ Solar Units Hit By Blind Spot In Safeguard Duty

Lack of clarity on whether the 25 per cent safeguard duty (SGD) on imported cells and modules will apply to solar manufacturing plants in special economic zones (SEZs), which account for 70 per cent of domestic capacity, have got major domestic players worried over the future of their investments in such units.

The finance ministry last month notified 25% SGD on imported solar cells and modules to check dumping by Chinese-owned companies in the mainland and Malaysia. This was done on the recommendations of Directorate General of Trade Remedies. The notification did not clarify whether the duty will apply to items supplied to the local market, called ‘domestic tariff area’ in industry parlance. Since SEZ units use imported components for solar manufacturing, the companies say the ambiguity in the notification could hit their investments and cause loss of jobs Read More

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