The central government has excluded solar power projects from the list of goods that can avail of a concessional 7.5 per cent import duty under the project imports scheme, a move criticised by solar power developers.
As per the government, the exclusion plugged a loophole that allowed developers to bypass the 40 per cent import duty imposed on solar projects to encourage local manufacturing. According to solar power developers, the decision is a major setback to the country’s solar power capacity addition plan and they might consider legal options opposing the differential treatment as only solar power plants have been excluded.