BCD on solar PV cells to support OEMs: ICRA

New Delhi, March 14 : Imposition of basic customs duty (BCD) on imported solar PV cells and modules will support domestic OEMsm, ICRA said in a note.
Earlier, the Centre had approved a proposal to impose a BCD of 25 per cent on imported solar PV cells and 40 per cent on imported solar PV modules, with effect from April 1, 2022.
As per ICRA note, while this move will support domestic OEMs, it is likely to result in an increase in solar tariffs.
However, clarification is awaited on the continuation of the safeguard duty (SGD) on imported cells and modules, which is currently at 14.5 per cent, valid till July 2021.
“This is expected to result into an increase in the capital cost for a solar power project by 23-24 per cent,” said Girishkumar Kadam, Co-Group Head, ICRA Ratings.
“This in turn would result in an increase in tariff by about 45-50 paise per unit. Nonetheless, the bid tariff trajectory is likely to remain well below Rs 3 per unit and thus, would continue to remain cost competitive from the off-takers’ perspective.”