Govt removes 20 pc customs duty on solar cells, panels

The government on Saturday announced removal of 20 per cent import duty on solar cells and panels in the Budget, with immediate effect.

According to the Budget documents, the customs duty on solar cells and solar cells assembled in modules or made up into panels was reduced from 20 per cent to zero per cent.

This assumes significance in view of India's ambitious target of adding 100 gigawatt (GW) of solar energy by 2022. India has already achieved installation of 34 GW of solar energy in the country.

Earlier in July 2018, the government had imposed 25 per cent safeguard on solar cells imports from China and Malaysia for two years to protect domestic players from steep rise in the inbound shipments of the product.

The government had imposed 25 per cent safeguard duty for the period from July 30, 2018, to July 29, 2019.

This was to gradually come down to 20 per cent during the period between July 30, 2019, and January 29, 2020, and 15 per cent during the January 30, 2020-July 29, 2020, period.

The duty was imposed following recommendations by the Directorate General of Trade Remedies, under the commerce ministry.