Solar projects can't use concessional duty as govt seeks to curb imports

Step seeks to stop project developers from avoiding basic customs duty, but it could raise cost of production

Solar power project developers will not be able to avail themselves of concessional import duty of 7.5 per cent and avoid the existing basic customs duty (BCD) levied on imports: the impact of a policy update that is likely to lead to increase the cost of production.

The Central Board of Indirect Taxes and Customs issued Project Imports (Amendment) Regulations, 2022 on Thursday. "In the Project Imports Regulations, 1986, against Sr. No. 2, in column 2, and in Sr. No. 3, in column 2, for the words 'All Power Plants and Transmission Projects', the words 'All Power Plants and Transmission