Solar equipment manufacturers who have their units in special economic zones (SEZs) said that they might have to shut shop if the government continues its proposal which would levy a basic customs duty on the value addition done at these plants.
However, in the last couple of interactions that the Ministry of New and Renewable Energy (MNRE), this issue has not moved beyond the government taking cognisance of this concern, said people present at the meetings.
“In the absence of a level playing field, domestic manufacturers in SEZs will have to shut shop and may see job losses to the tune of 15,000 people,” said Saibaba Vutukuri, CEO of Vikram Solar. These units can provide up to 400,000 more jobs in the country moving forward as the focus shifts to domestic manufacturing, Vutukuri added.
Per industry estimates, 63 per cent of solar cell and 43 per cent of solar module manufacturing capacity are located in SEZs.