NEW DELHI: Solar projects involving investments of Rs 1. 3 lakh crore bid out earlier than March 2021 will be exempted from the income division’s order scrapping decrease customs duty below the concessional mission import scheme for solar sector, energy and renewable vitality minister Raj Kumar Singh informed TOI.
The transfer will carry reprieve for 26,000 MW capability below varied levels of implementation by holding the doorways open for tools imports value Rs 60,000 crore at 5% duty, as a substitute of the 40% primary customs duty (BCD) that got here into impact from April 1. Singh stated the ministry has additionally determined to offer a 12-month extension to preMarch 2021 projects to make sure capability addition didn’t undergo.
“We placed the (tax) issue before the finance ministry and asked them to include these projects in the concessional duty scheme. We have suggested the concessional duty be retained at the original 5% instead of 7. 5% now and sent a list of the projects,” Singh stated. Singh stated the 5% concessional duty below the scheme will be allowed to be handed by means of to keep away from placing extra monetary burden on promoters.
The finance ministry didn’t favour the renewableenergy ministry’s preliminary strategies for a grant to offset the impression of greater import duty on these projects. Instead, it instructed duty refund.
The income division had on October 20 amended the Project Imports Regulations of 1986 to take away solar from the mission imports scheme that allowed import of solar modules and cells wanted for organising new items or enlargement of an present unit at a concessional duty of 5%, later raised to 7. 5%.
For promoters whose projects have been already underway when the federal government in March 2021 introduced its intent to impose 40% BCD on cells and modules from April 2022, the mission import scheme allowed safeguard for their investments.
Source: timesofindia.indiatimes
