Business Mantra News
- The Directorate General of Safeguards (DGS) is considering to impose 70% duty on import of solar panels and modules to protect the interest of domestic industry.
- The proposal comes in the backdrop of deterioration of domestic industry in India due to surge in import of Solar cells most commonly from Malaysia and China.
- The Indian Solar Manufacturers Association (ISMA) has approached the Directorate General of Safeguards (DGS) and concerned over the loss of domestic producers due to increase in imports of solar panels from abroad.
- This imposition of Safeguard duty on import of Solar panels may be beneficial for the domestic manufacturers or producers of solar panels because due to levy of high safeguard duty the importers of solar panels may shift to domestic producers.
- On the other hand it may put additional burden on the solar original equipment manufacturers (OEMs) and discourage the domestic trade.
- The consumers will have to bear this burden as the levy of safeguard duty will raise the project cost by at least 40%.
- The All India Solar Industries Association said that this imposition of safeguard duty will badly hit the solar Manufacturers and industrialist operating from the Special Economic Zone (SEZs).