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Investments of Rs 1.3 lakh crore in photo voltaic tasks which had been bid out earlier than March 2021 are actually exempted from the income division’s order scrapping decrease customs responsibility beneath the concessional undertaking import scheme for photo voltaic sector, Energy and Renewable Power Minister Raj Kumar Singh advised TOI.
This may permit for 26,000 MW of capability to be restored at numerous levels of implementation. It additionally permits for tools imports of Rs 60,000 crore at 5% responsibility as an alternative of the 40 % primary customs responsibility (BCD), which took impact on April 1, 2022. Singh said that the ministry has granted a 12-month extension of concessional customized responsibility, for pre-March 2021 tasks in an effort to guarantee capability enhance don’t undergo, studies TOI.
India carried out a primary customs responsibility (BCD), of 40% on photo voltaic cells and 25% on photo voltaic modules, efficient 1 April, 2022. This was achieved to cut back imports from China and enhance home manufacturing. Almost 85% of India’s photo voltaic capability is created from imported modules and cells, primarily from China.
To keep away from excessive tariffs on modules and cells, a number of photo voltaic builders have tapped into the “undertaking import scheme”. Venture imports are designed to permit import of equipment, instruments and equipment for the development of latest models or substantial expansions of present ones. They are often imported at a concessional fee of 5%, later raised to 7.5%.
Solar energy builders have criticized the central authorities’s determination to exclude solar energy tasks from the checklist which might be eligible for a concession of seven.5% import responsibility beneath the undertaking imports scheme.
In line with the federal government, the exclusion closed a loophole that allowed builders to bypass the 40% import responsibility on photo voltaic tasks in an effort to encourage native manufacturing. The choice, in accordance with solar energy builders, is a big setback for the nation’s plan to extend its solar energy capability.