Finance Minister Nirmala Sitharaman in her Budget speech has put emphasis on the solar energy sector as part of the government’s larger focus on renewable energy.
She announced a customs duty hike on solar inverters and lanterns which would have an impact on the rooftop, ground-mounted projects and distributed renewable energy sector.
“To encourage solar manufacturers, we are raising duty on solar inverters from 5 per cent to 20 per cent and on solar lanterns from 5 per cent to 15 per cent,” said Finance Minister Nirmala Sitharaman in her Budget speech in Parliament today.
She added that to build up domestic capacity, the government would notify a phased manufacturing plan for solar cells and solar panels. Apex solar body, National Solar Energy Federation of India (NSEFI), welcomed the move for the increase of duty on inverters.
“This will not only promote indigenous manufacturing of inverters but will also lead to job creation in the sector especially impacting MSMEs. This is another step towards realising the goal of Aatmanirbhar Bharat,” Subrahmanyam Pulipaka, chief executive officer, NSEFI, told ETEnergyWorld.
Regarding duty hike on solar lanterns, he added that the announcement was a necessary step to place Indian manufacturers in a comfortable position and also to enable India in becoming a global leader in supply of solar lanterns.