India aims To Reduce Chinese Solar Imports
India Completes World’s Largest Solar Tender, Aims To Reduce Chinese Solar Imports
Adani Green Energy Limited (AGEL) and Azure Power have been declared to be the winners of the largest solar tender. This will result in the installation of 12 gigawatts (GW) of solar power generation and 3 GW per year solar manufacturing with an investment pegged at almost US $9 billion.
The tender, organized by the Solar Energy Corporation of India, was a first of its kind as it linked the installation of solar power plants with creating domestic solar manufacturing facilities.
The central government proposes to end custom duty exemption on solar cells and module imports as it looks to boost domestic manufacturing and put a check on large scale procurement of solar generation equipment from China. Sources in the government said that a 20 per cent basic customs duty may be imposed on solar equipment imports soon after the existing 15 per cent safeguard duty in solar cells and modules expired end of July.
In the first nine months of FY20, imports from China stood at $1,179.89 million. The imports had fallen drastically since April due to Covid-19 outbreak and shutdown of operations in China but the country remains sought after by developers as price of gear is almost 30-40 per cent cheaper. As per the plan, the government would now look at putting basic customs duty (BCD) of 20 per cent solar equipment imports from August when the continuing safeguard duty of 15 per cent ceases.