Govt removes 20% customs duty on solar panels
The government on Saturday announced removal of 20 per cent import duty on solar cells and panels in the Budget, with immediate effect. According to the Budget documents, the customs duty on solar cells and solar cells assembled in modules or made up into panels was reduced from 20 per cent to zero per cent. This assumes significance in view of India's ambitious target of adding 100 gigawatt (GW) of solar energy by 2022. India has already achieved installation of 34 GW of solar energy in the country. The government also aims to boost solar power generation by encouraging the installation of panels along rail tracks and on barren land, the finance minister said on Saturday as the country looks to cut its carbon footprint and accelerate clean energy production. Looking to expedite clean energy as some coal-fired power plants face closure, Asia's third-largest economy has set a target to raise renewable energy capacity to 175 gigawatts by 2022. Its renewable capacity rose 16% to 85.9 GW in 2019, while coal-fired capacity rose 3.9% to 198.5 GW. "A scheme to enable farmers to set up solar power generation capacity on their barren/fallow lands and to sell it to the grid would be operationalized," Nirmala Sitharaman said in her budget speech. “Usage of barren land to provide solar power to grid will not only help farmers, but also bridge the gap in power requirements” shared Argenio Antao, Chief Operating Officer, Colliers International India. The FM said a proposal is under consideration to set up large solar power capacity alongside rail tracks and raised the outlay for the renewable energy ministry by 48% for 2020/21. She also extended lower tax rates to utilities, which some experts say should mostly help boost renewable energy.
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