basic customs duty

The Indian government has approved production-lined incentives for the country’s solar module manufacturing sector to help the country add an extra 10GW of solar power generation capacity over the next five years.

After a challenging year, India’s solar sector stands primed for something of a rebound. But a host of familiar issues, from the perilous state of DISCOMs to regulatory uncertainty, run the risk of stymying future growth. Vinay Rustagi, managing director at consultancy Bridge to India, talks to PV Tech about the future prospects for Indian solar.

Solar developers have welcomed clarification on India’s new import duties for modules and cells that will come into effect next year, but questions have been raised about the ability of domestic manufacturers to ramp up production to meet rising demand.

India will introduce a 40% basic customs duty on solar modules and 25% duty on cells as of April 2022 to cut the reliance on imports and expand the country’s PV manufacturing base.

Details of India’s proposed basic customs duty (BCD) on imported solar modules and cells are expected to be announced this week, according to a report in BusinessLine.

India’s government has agreed on a financing package that includes INR 45 billion (US$603 million) of investment over five years to support the domestic development of high-efficiency PV modules.

State-owned companies in India could be tasked with establishing polysilicon manufacturing facilities to help make domestic solar manufacturing more competitive, reports have claimed.

India should put in place immediately a basic customs duty (BCD) of at least 50% on solar equipment to safeguard the future of local manufacturers, the chairman of trade body All India Solar Industries Association (AISIA) said.

India is looking to set up a range of new production zones to manufacture solar equipment, according to local reports.

The Indian government has extended its safeguard duty on solar equipment for one more year, effective today.