The ministry of new and renewable energy (MNRE) has reportedly asked the finance ministry to exempt current solar power projects from 25% safeguard duty imposed last week. The duty came into effect on July 30.
MNRE secretary Anand Kumar speaking to ET said “We have requested the finance ministry to exempt projects that have already been awarded or were at the implementation stage before July 30.”
According to the publication Solar power developers has already raised their concerns in a recent meeting with MNRE officials about raising additional capital, they said that they did not factor in safeguard duty while bidding for projects.
Solar projects of around 13,000 MW capacity are estimated to be under construction as on July 30.
Finance ministry recently notified DGTR’ recommendation to implement 25% safeguard duty on imported solar panels for two years.
Safeguard duty is expected to protect the domestic solar players which is currently facing the onslaught of cheap imports, however, developers have maintained that the duty would increase solar power tariffs by around 40 paise per unit.
Anand Kumar further stated “Project developers are finding it difficult to raise additional costs for the modules. In case the pass through is resorted to, it will create logging of the capital.”
ALSO READ:
USTDA signs MoU with Indian company for 41 Mw hybrid wind, solar project in Andhra
India imposes 25 percent safeguard duty on solar cells and modules