Lok Sabha Question No. 48 (UNSTARRED), answered on 2023-02-02
Subject: Basic Customs Duty on Imported Solar Modules
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Dushyant Singh

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 48

ANSWERED ON 02.02.2023

## BASIC CUSTOMS DUTY ON IMPORTED SOLAR MODULES

## 48. SHRI DUSHYANT SINGH

- (a) whether it is a fact that the Basic Customs Duty (BCD) of 40 per cent on imported solar modules has made private and PSU solar projects unviable due to increased costs;
- (b) if so, the details thereof, project-wise;
- (c) the amount of customs revenue lost due to solar developers using the "Project Import" loophole to avoid paying BCD; and
- (d) the details of the increase in indigenous production and sale of solar modules since the implementation of BCD and the announcement of the PLI scheme, State/UT-wise?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER (SHRI R.K. SINGH)

- (a) & (b) No, Sir. The Government had announced imposition of Basic Customs Duty on import of solar PV cells and modules with effect from 01.04.2022, well in advance, on 09.03.2021 so that the developers of solar power projects wherein the last date of bid submission was on or after 09.03.2021,  duly  take  into  account,  the  impact  of  BCD  with  effect  from  01.04.2022,  while submitting their bids.
- (c)  Project Imports Regulations, 1986 apply for assessment and clearance of the goods falling under heading No. 98.01 of the First Schedule to the Customs Tariff Act, wherein, the rate of Basic Customs Duty (BCD) is 7.5% with effect from 01.10.2022. The imports under the said regulations are governed by the terms and conditions specified therein and thus, it is not correct to label the same as a loophole to avoid paying BCD.
- (d)  As  per  the  Approved  List  of  Models  and  Manufacturers  (ALMM),  in  respect  of  solar  PV modules, issued by the Ministry of New & Renewable Energy (MNRE), the installed capacity of solar PV module manufacturing (enlisted in ALMM) was about 8.2 GW in March 2021, which has  increased  to  about  21.7  GW  in  January  2023.  The  details  of  State-wise  solar  PV  module manufacturing capacity as per ALMM List of March 2021 and as per ALMM List of January 2023, is at Annexure-I . Solar PV module manufacturers are not required to report their production and sales  data  to  Ministry  of  New  &  Renewable  Energy  (MNRE),  and  therefore,  this  data  is  not available with MNRE.

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Annexure-I Annexure-I referred to in reply to part (d) of Lok Sabha Unstarred Question No. 48

replied on 02.02.2023

| Sl. No.   | State/ Union Territory   |   Installed Solar PV Module Manufacturing Capacity as per ALMM List of March 2021 (in MWper annum) |   Installed Solar PV Module Manufacturing Capacity as per ALMM List of January 2023 (in MWper annum) |
|-----------|--------------------------|----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
| 1         | Andhra Pradesh           |                                                                                                  0 |                                                                                                   14 |
| 2         | Chhattisgarh             |                                                                                                125 |                                                                                                  125 |
| 3         | Goa                      |                                                                                                  0 |                                                                                                   60 |
| 4         | Gujarat                  |                                                                                               3895 |                                                                                                11072 |
| 5         | Haryana                  |                                                                                                240 |                                                                                                  591 |
| 6         | Himachal Pradesh         |                                                                                                  0 |                                                                                                   31 |
| 7         | Jharkhand                |                                                                                                  0 |                                                                                                   25 |
| 8         | Karnataka                |                                                                                               1000 |                                                                                                 2229 |
| 9         | Maharashtra              |                                                                                                200 |                                                                                                  915 |
| 10        | Odisha                   |                                                                                                  0 |                                                                                                   20 |
| 11        | Rajasthan                |                                                                                                  0 |                                                                                                  161 |
| 12        | Tamil Nadu               |                                                                                                  0 |                                                                                                  972 |
| 13        | Telangana                |                                                                                               1262 |                                                                                                 2411 |
| 14        | Uttar Pradesh            |                                                                                                  0 |                                                                                                 1061 |
| 15        | Uttarakhand              |                                                                                                  0 |                                                                                                  228 |
| 16        | West Bengal              |                                                                                               1460 |                                                                                                 1766 |
|           | TOTAL                    |                                                                                               8182 |                                                                                                21681 |