India will impose a 40% tax on imported solar modules from April next year to reduce dependency on foreign goods and increase domestic production, MNRE said.
The Department of Finance has approved the proposal, which includes a 25% import duty on solar cells, the department said in a letter published on its website. It was not stated how long the taxes would last.

India began raising tariffs on the import of solar power equipment in the middle of last year following a spate of virus-related procurement and deadly conflicts along the border with China, providing about 80% of India’s modules.

As part of its plan to switch to clean energy sources, India plans to increase its renewable energy power by five times to 450 gigawatts by 2030. About 280 gigawatts of that will be exposed to the sun, according to the department. The government sees the domestic solar industry as important in achieving its goals, and the tax system is also part of a broader effort to help create jobs and revitalize the epidemic economy.

India currently charges a 14.5% protection tax on the importation of solar cells and modules from many countries, including China, which is expected to expire in July. Companies bidding for projects should pay attention to the government’s new tax plans, the department said.

Source: MNRE