The entire India Solar Industries Association (AISIA) called on the government on Thursday to impose at least 50 percent BCD (Basic Custom Duty) on solar systems for the maintenance of domestic manufacturers.
A statement by AISIA said India's solar sector saw a sharp decline and exports saw a decline following the coronavirus-related disruption.
“AISIA urges the Indian government to immediately use BCD for maintenance,” said AISIA.
This is also the time when the government can give the Prime Minister's Vocal for Local Movement further impetus and help local manufacturers to strengthen their position in the domestic market.
While the duty to protect and the government's recent decision to allocate land near ports for the establishment of production units were a step in the right direction, solar manufacturers are calling for an immediate hiatus, it said.
“The survival of the manufacturers requires the government to examine the restructuring of existing guidelines such as the implementation of at least 50 percent BCD, ALMM (Approved List of Models and Manufacturers). Without this future, the future of domestic solar module manufacturers appears bleak and dwindling.” AISIA Chairman Hitesh Doshi said.
The country's reliance on China for solar imports in FY20 was recorded with imports valued at $ 1.3 billion.
This shows the potential of the sector for domestic manufacturers to contribute to GDP should the focus shift to enabling domestic players, Doshi said, adding that decreasing reliance on China and other international markets will also save foreign currency.
Even the provision of a passport or grandfathering for the import of modules does not offer an opportunity to buy solar modules from local manufacturers, according to the authority.
Grandfathering is a provision in which an old rule continues to apply to some existing situation while a new rule applies to all future cases.
“So far, more than 32,000 MW PPA (power purchase agreement) are planned, for which approx. 45,000 MM modules will be imported over the next three years if the local manufacturers receive the same benefits. We will not save thousands of jobs, but also enormous foreign exchange , “it said.
Developers will have the option to buy from India and Indian manufacturers will survive, he added.
(Only the headline and image of this report may have been updated by Business Standard staff. The rest of the content is automatically generated from a syndicated feed.)
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