Centre to amend solar bid rule to allow import duty hike pass through

The Centre is set to amend the bidding rules to allow the pass through of duty hike in solar energy programme after the recommendation of 70 percent safeguard duty on solar cells.

"The duty structure prevailing at the time of bidding will apply. Any change in taxes and duties would be passed through. Current bidding document provides for passing through taxes only. We would provide for passing through taxes and duties," Union Power Minister RK Singh said.

"The government will ensure that the rules are not implemented retrospectively," he added.

On being asked if the amendment in the bidding rules would need permission from Parliament, the Minister said it can be done by his approval.

Singh further said an inter-ministerial committee headed by commerce secretary will finalise the recommendation on the proposal of Directorate General of Safeguards (DGS) in a week.

The DGS in its preliminary report investigating the dumping of solar cells, has suggested a 70 per cent safeguards duty on imports.

Meanwhile, a Parliamentary panel has also questioned the proposed 70 per cent safeguard duty on solar equipment saying there is no valid ground for it and would affect the viability of existing projects and dampen investor sentiment.