After imposition of BCD , the first solar auction witnesses solar bid tariff of Rs 2.20 per unit

After the announcement of imposition basic customs duty on solar imports, the first solar auction has witnessed a tariff of Rs. 2.20, which is much to the surprise of the renewable energy industry.

So far the lowest tariff recorded in the country is of Rs 1.99 which was also held by the Gujarat Urja Vikas Nigam Limited. Industry players already predicted that there would be a rise of around 25% from that benchmark, which would result in a hike of at least 45 to 50 paise per unit.

Early this month the central government announced the imposition of a basic customs duty (BCD) on solar imports from April 1, 2022. A 40% charge will be imposed on solar modules, while cells will attract 25%. MNRE in a notification also clarified that already bid-out projects will not be exempted.