Safeguards duty on solar cell import could increase costs of new projects

The solar industry had calculated that this duty imposition would lead to an escalation of 50-60 paise in the final solar tariff

The solar industry may be about to face what imported coal-based power projects saw some years back --- an increase in production cost due to changes in law and the imposition of new tariffs. Due to a safegaurds duty recently announced by the government, close to 7,000 MW of under-construction and recently bid solar projects will see their cost go up and would have to revise their tariff accordingly.

The Indian government announced the imposition of safeguards duty on imported solar cells and modules for two years – 25 per cent for 12 months from now, 20 per cent for six months