SGD Extension Welcomed By the Indian Solar Industry
The government’s one-year extension of the safeguard duty (SGD) on Chinese solar power equipment till July 29, 2021 has taken the solar industry by surprise. Industry executives said that instead of creating such fencing, the focus should be on reducing the cost of domestic manufacturing.
As per the industry players, the basic customs duty (BCD) exemption should continue else it will definitely slow down the industry further. The power generators are also ‘Making power in India’ and this simply increases the power cost for the consumers that include the industry and the discoms. Which would eventually pass on to the consumers. In these times when discoms and the industry are looking to reduce costs, such a move would have a negative impact on far too many domestic manufacturers just to provide benefit to a few companies.
Renewable energy minister R K Singh had recently said that BCD of 15-20 per cent on solar equipment would be imposed in August, however, an official notification on it is still awaited.
The SGD was initially levied in July 2018 on Chinese and Malaysian solar products to prevent dumping of Chinese solar equipment in the country. It was introduced at a rate of 25 per cent initially, which reduced to 20 per cent on July 30, 2019, and to 15 per cent on January 30 this year.