India considers customs duty on solar equipment

Market: Metals
24/06/20

India plans to impose a basic customs duty (BCD) on solar modules, cells and inverters from August to boost domestic production and reduce its reliance on imports.

India's finance ministry in February had proposed to impose a BCD of 20pc on solar cells and modules in its 2020-21 fiscal year budget. Solar cells imported from China and Malaysia currently attract a 15pc safeguard duty that is applicable until the end of July. India now plans to have duties in place to counter cheaper imports of solar equipment into India from August.

India's power ministry said all scheduled solar power project bids will be required to buy solar cells and solar modules and other equipment from an approved list of manufacturers, effective from 1 October.

The construction of solar power farms requires multiple non-ferrous metals including tellurium, gallium, germanium, indium, silicon and cadmium.

India aims to raise solar energy capacity to 100GW in the next two years and about 280GW by 2030 from the current 35GW. India is already working to expand its total renewable energy capacity to 175GW by 2022 and 435GW by 2030 from an existing 87GW.

India also plans to provide lower interest rates on loans through its Power Finance Corporation, Rural Electrification Corporation and Indian Renewable Energy Development Agency to developers that use domestically manufactured equipment.

By Samil Surendran

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