Relief for Stalled Solar Projects

The Indian government has announced a plan to provide relief for stuck solar power projects that have been affected by a shortage of modules.

In a letter to the Solar Energy Corporation of India (SECI), NTPC, and NHPC, the Ministry of New and Renewable Energy announced that the deadline for completion of projects that had bids finalized before March 9, 2021, would be extended until March 2024.

This extension is in response to the announcement made on March 9, 2021, when the government declared that from April 1, 2022, any import of solar PV modules would be subject to a 40% basic customs duty, and solar PV cells would be subject to a 25% basic customs duty.

The letter, which was dated January 25, noted that many projects that had been finalized by government agencies before the announcement of the customs duty were delayed due to the Covid-19 pandemic and resultant supply chain disruptions.

The move is expected to provide relief for projects that have been stalled or delayed due to the lack of available solar modules.