Govt to amend solar bid rule to allow pass-through of duty hike
New Delhi: Allaying fears of ail adverse impact on India's solar energy programme due to the proposed 70% safeguard duty, power minister R K Singh said the government will amend bidding rules to allow pass-through of duty hike. The government will ensure that the rules are not implemented retrospectively he said.
With pass-through of any hike in duties, solar power developers will be allowed to increase the tariffs based on which they have bagged the projects, so as to recover the extra cost.
"The duty structure prevailing on the day of the bid shall be implemented. Any change in taxes and duties would be passed through. Current bidding document provides for passing through taxes only. We would provide for passing through taxes and duties," Singh said.
He also assured that the
SUNNY SIDE UP
? Power developers will be allowed to raise tariffs based on which they have bagged the projects
? At present customs duty on solar cells/ modules/panels is levied at 7.5%
amendment in the bidding rules can be done by his approval and does not require Parliament nod.
He said an inter-ministe-rial committee headed by
commerce secretary will finalise the recommendation on the proposal of Directorate General of Safeguards (DGS) by next week.
The recommendations of the DGS are examined by the Board of Safeguards, which is headed by the Commerce Secretary. If the Board agrees with the findings of the DG Safeguards, it recommends imposition of the duty to the Finance Ministry
The safeguard duty is a global measure and applies to imports from all countries.
In a January 5 recommendation to the finance ministry, the DGS said solar cells are "being imported into India in such increased quantities and under such conditions so as to cause or threaten to cause serious injury to the domestic industry manufacturing like or directly competitive products". ?PTI