Customs duty on imported solar cells likely to hike power bill by 20%

There is a 14.5-per cent safeguard duty on imported solar gears from China and Malaysia.

The proposed 40 per cent basic Customs duty (BCD) on imported solar cells and modules from 2021-22 onwards is likely to increase power tariff by around 20 per cent per unit (kilowatt hour). While the duty is yet to be notified by the Ministry of Finance, the industry sees solar tariff going up with no considerable help to domestic manufacturing.
 
Given the average solar tariff in the country is around Rs 2.5 per unit, it is likely to cross the Rs 3-mark after the duty is levied. At the same time, projects tendered in the second half of the