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Scrapped Import Duty of Solar Panels - A Threat to Local Solar Component Makers

May 15, 2018 06:01 PM

Tagged Sector(s) : Renewable

Revoking of solar panels classification from “electric motors and generators” to their original classification has waived off 7.5% import duty on Solar Panels Import. This has resolved issues pertaining to various solar developers whose solar import consignment was log-jammed at Indian ports. This has certainly provided a big relief to developers bound by contractors and obligated by investors, restraining their time and cost overruns. Pertinent to such uncertainties Banks and Financial Institutions have turned out more stringent in their lending norms and are eyeing on such concealed regulatory uncertainties. Recent Solar auction and winning bids have shown solar developers being skeptical about such muddle and have been less aggressive in competitive bids.

Such exclusion from import duty would also make import of Panels more easier and would puncture the sentiments of domestic solar manufacturer. Domestic solar manufacturers are struggling to compete with Chinese manufactures, who marvels  due to economies of scale of production. Regulator should include DCR (Domestic Content Requirement) norms in solar bids so as to provide long-term safeguard to domestic solar component manufacturer nonetheless domestic solar industry will soon cripple down.

Article By:
Amit Sharma

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