Renewables ministry asks FinMin to impose customs duty on solar cells

The renewables ministry wants separate classification for solar PV cells and modules used for clean energy projects and levy duties on their import

Pushing the case for Make in India in solar equipment manufacturing, the Ministry of New and Renewable Energy (MNRE) has requested the Ministry of Finance to impose Customs duty on imported solar cells and modules in a graded manner from 2021.

This is the year when the safeguards duty levied on these items will expire.

As India is a signatory to the Information Technology Agreement (ITA-I), solar photovoltaic (PV) cells and modules are classified under Customs Tariff Head 8541 and exempt from Basic Customs Duty (BCD). 

The MNRE wants separate classification for solar PV cells and modules used for clean