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Centre mulls import tariffs on renewable energy equipment

Friday, 09 Aug 2019
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The Union government is considering to raise tariffs on imports of green energy equipment in a bid to boost their local manufacturing and protect domestic companies from cheaper imports.

Going forward, more tariff barriers may be introduced for components such as glass, solar cells and gear boxes. The Central government is also putting final shape on a plan to build Tesla-style giga factories to manufacture batteries that involves raft of incentives such as concessional financing options, friendly tax regimes and a suitable basic customs duty safeguard.

The government has come up with tariff and non-tariff barriers and going forward, only the Bureau of Indian Standards (BIS) and the Ministry of New and Renewable Energy approved solar-cell modules will be permitted. This will help in maintaining quality and avoiding the use of low quality imported solar equipment by developers. India currently has a domestic manufacturing capacity of three GW for solar cells and that of around 10 GW for wind power equipment.

The Union Budget in July 2019 also announced tax breaks for setting up mega-manufacturing plants for solar photovoltaic cells, lithium storage batteries and solar electric charging infrastructure.

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