MNRE Appeals Exclusion of Solar Projects under Execution from Safeguard Duty

The ministry has put up an urge to exclude projects bid out before 31^st July as the safeguard duty came into effect on July 31^st.

The Ministry of New and Renewable Energy (MNRE) has urged the Finance Ministry to exempt solar projects under implementation from the 25 percent safeguard duty on solar goods from China and Malaysia.

The ministry has put up an urge to exclude projects bid out before 31^st July as the safeguard duty came into effect on July 31^st.

“We have requested the finance ministry to exempt projects that have already been awarded or were at the implementation stage before July 30,” MNRE secretary Anand Kumar told ET.

Solar power developers have come up with the exemption request in the wake of 25 percent safeguard duty being not included in the norms while the solar projects were floated for bidding.

As per records, around 13,000 MW of solar projects were under construction at the time of the implementation of the safeguard duty.

The solar safeguard duty was imposed in the interest of the domestic solar manufacturers. The solar developers, on the other hand, state that the safeguard duty would increase the solar tariff in the country by around 40 paisa per unit. Moreover, 90 percent of the solar equipment is imported whereas 80 percent of it is imported from China.

The developers also cited the additional costs of the modules for the request of the exemption. Replying to the government, the developers state that to compensate the additional costs they would have to approach the Central Electricity Regulatory Commission for a hike in the electricity tariffs.

The increase in the tariffs is said to be a year and a half long process.

Source: ET