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The Ministry of Finance has extended the safeguard duty on imported solar cells and modules for another year based on the recommendations of Directorate General of Trade remedies (DGTR).
The Safeguard duty rate for July 30, 2020 – January 29, 2021 is 14.90% and for other six months ie. January 30, 2021 – July 29, 2021 the rate is 14.50%.
The safeguard duty will be imposed on solar cells falling under tariff items 8541 40 11 or 8541 40 12 of the First Schedule to the Customs Tariff Act, when imported into India.
These duties will not apply to any developing country with the exception of China, Thailand and Vietnam.
To know more about the order refer to document below:
Recently, Maharashtra Electricity Regulatory Commission (MERC) has recently passed an order in regards with ReNew Solar Power Private Limited seeking an appropriate mechanism for grant of an appropriate adjustment/ compensation to offset financial or commercial impact of change in law events on account of imposition of safeguard duty on solar cells and modules.
The commission ordered that ReNew Solar Power Private Limited is eligible for claiming compensation on account of imposition of Safeguard Duty (including additional GST) under Change in Law provisions of PPA for capacity of 362.50 MW of Solar module/panel installed at project location. It also instructed to provide undertaking stating that all modules installed at the project site for supplying power to Maharashtra State Electricity Distribution Company Ltd. have been imported from the Country/ies which are subjected to Safeguard Duty.