With the growing awareness and need to take recourse to non-renewable sources of energy, Solar power is gaining increasing popularity. India, receiving abundant sunlight, owing to its geographical location, can utilize the solar power to carry out numerous functions which would otherwise depend on input of fuels. With its conscious choice to use significantly more clean energy to fuel its growth, India is contributing to global efforts to save the planet from the effects of climate change. The contribution to the efficient solar power utilization comes from its various States like Rajasthan, Gujrat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.
Although, India uses solar energy to a great extent, more than 90% of solar panels and modules used in Indian solar projects are imported. Therefore, India still relies on other nations for the utilization of solar power. In the light of above, the Department of Revenue, Ministry of Finance vide its notification dated July 30, 2018, intimated regarding the imposition of safeguard duty as recommended by the Directorate General of Trade Remedies (DGTR), in the final findings. As per the said notification, the tariff on the imported solar panels would be applicable in the manner stated below:
a) 25% ad valorem minus anti-dumping duty payable, if any for imports between July 30, 2018 to July 29, 2019.
b) 20% ad valorem minus anti-dumping duty payable, if any for imports between July 30, 2019 to January 29, 2020.
c) 15% ad valorem minus anti-dumping duty payable, if any for imports between January 30, 2020 to July 29, 2020.
It clearly specified that said safeguard duty shall not apply to imports from developing countries except China and Malaysia.
By this step, the Government once again emphasizes on its " encouraging and reposing faith in the domestic manufacturers to enter into the field of solar power being a self-reliant and self-sufficient nation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.