The solar sector declined by 83% even before government checks started

These months saw the maximum impact of Covid-19 with lockdown in many parts of the country and hampering economic activity

New Delhi (Natural Energy News): The Covid-19 epidemic has caused a severe setback to India's solar equipment imports from China, even before various government initiatives to examine imports and boost domestic manufacturing sets.

According to data from the Ministry of Commerce, Indian imports declined by 83 percent in the April-June quarter of the current fiscal year from $ 69 million (Rs 2,970 crore) during the same period last year. 515 crores).

These months saw the maximum impact of Covid-19 with lockdown in many parts of the country and economic activities being hampered.

On a quarter-on-quarter (QoQ) basis, Indian solar imports declined by 54 percent in the April-June quarter from $ 150.5 million (Rs 1,120 crore) in the January-March period.

According to renewable energy consultancy and communications firm Mercom, the slowdown in imports is mainly due to the lockdown that has halted project development activity in many parts of the country as labour shortages continue.

According to government data, a significant portion of Q1 imports into the solar sector continued from China as it still accounted for 77 percent of total imports in the April – June period. China is followed by Thailand at 7 percent, Vietnam at 5 percent, Singapore at 3.5 percent and Cambodia at 3 percent.

China's presence in Indian solar projects remains strong despite the decline in actual imports of Covid-19. During the January – March period, China contributed 79 percent of total imports to India.

The government is looking at various initiatives to reduce import content in solar projects, mainly to check imports from China, with which its ties have been narrowed after recent violent border clashes in Ladakh.

The Finance Ministry has already notified the extension of the safe duty on imports of solar cells and modules for another year which will affect countries such as China, Thailand and Vietnam. This fee will be levied 14.9 percent from July 30 to January 29, 2021, and 14.5 percent from January 30, 2021, until July 29, 2021.

There is also a plan to impose a basic customs duty (BCD) on solar cells and modules. The Ministry of Power has proposed a BCD of 20-25 percent on solar modules which increases the tariffs by 40 percent in the second year and 15-20 percent on solar cells, with an increase of up to 35-40 percent in the second year.

Post a Comment