The Finance Ministry proposal to subject an order to impose a fundamental 40 per cent customs obligation on modules and 25 per cent on photo voltaic cells as part of Aatmanirbhar Bharat is seen as a constructive step aiding the home producers who’ve been making out a case for this from a while.
In line with Brickwork Rankings, the customs obligation will substitute the present 15 per cent safeguard obligation imposed on imports from China and Malaysia. India plans to impose the brand new tariffs on of photo voltaic cell and module imports from April 1, 2022.
Vipula Sharma, Director, Rankings, Brickwork Rankings, in a press release mentioned, “The proposed customized obligation is anticipated to create a conducive atmosphere for the home producers of photo voltaic cells and panels as they turn into extra aggressive within the wake of imports changing into costly and can result in elevated investments on this area. Nonetheless, the price of new photo voltaic initiatives submit the brand new customized obligation regime is anticipated to go up within the medium time period, leading to elevated vitality tariff charges from the present ranges.”
The efficient date for the obligation has been saved on April 1, 2022 to be able to be certain that photo voltaic initiatives that plan to signal Energy Buy Agreements (PPAs) earlier than the efficient date with imported modules take this issue into their price calculation and never go the burden of the customized obligation on to finish shoppers by invoking the change in legislation clause. As well as, initiatives with imported modules for which PPAs have already been signed have satisfactory time to finish their initiatives earlier than the brand new obligation comes into drive, and the tip shopper is not going to be burdened.
With India falling 60-62 GW wanting the focused 100 GW of solar energy era by 2022, there’s appreciable demand for polysilicon, wafers, cells and modules, a few of which may very well be met by native manufacturing. Presently, Chinese language modules are 10-20 per cent cheaper, and photo voltaic cells are 30-40 per cent cheaper than these made in India. The proposed customized obligation will assist in bridging this hole to a sure extent and create a conducive atmosphere for home producers to scale up their capability.
To fulfill India’s photo voltaic targets, 30 GW capability of module and cell manufacturing is required, which is way greater than the present module manufacturing capability of 9-10 GW and photo voltaic cell manufacturing capability of three GW.
By end-September 2020, the ability ministry had obtained expressions of intent to set-up 20 GW extra of home photo voltaic module and cell manufacturing capability within the nation.
Publish the brand new customized obligation regime, the price of new photo voltaic initiatives is anticipated to go up, leading to elevated vitality tariffs within the medium time period.