Solar energy sector: A developers’ perspective

By Deepak Kumar Thakur, HSA Advocates
0
2360
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

India has been charging ahead in the fast-growing solar energy sector. The United Nations recently conferred the “Champions of the Earth Award” to Prime Minister Narendra Modi in recognition of India’s work in promoting new areas of cooperation on environmental action and championing the International Solar Alliance (ISA).

Deepak Kumar ThakurPartnerHSA Advocates
Deepak Kumar Thakur
Partner
HSA Advocates

ISA is a platform for cooperation among solar resource rich countries to reduce the cost of finance and technology, and for mobilizing more than US$1 trillion of investments by 2030.

However, despite the government’s focus on developing the solar energy sector, India’s regulatory and legal framework leaves a lot to be desired. Instead of supporting the solar power developers, it appears to be disincentivizing them.

Imposition of safeguard duty: The Ministry of Finance in a notification on 30 July, imposed a safeguard duty, a duty payable on import of goods that are already being manufactured in India, on “solar cells whether assembled in modules or panels” for a period of two years.

While it helps to protect the interests of the domestic module manufacturers, it dissuades developers from continuing with their projects under implementation as the additional duty increases the cost because most Indian solar power companies import their modules mainly from China and Malaysia.

Solar projects that have the tied-up power purchase agreements with a fixed tariff, determined keeping in mind the costs of the (imported) solar modules, will now become unviable because of the additional safeguard duty. It is important that the government step in and take corrective measures to protect the interests of the solar power developers at least for the projects that are under implementation.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Deepak Kumar Thakur is a partner at HSA Advocates. HSA is a full service firm with offices in New Delhi, Mumbai, Bengaluru and Kolkata.

81/1, Adchini
Sri Aurobindo Marg
New Delhi – 110 017
India
Tel: +91 11 6638 7000
Fax: +91 11 6638 7099

Construction House
5/F Walchand
Hirachand Marg
Ballard Estate
Mumbai – 400 001
India
Tel: +91 22 4340 0400
Fax: +91 22 4340 0444

Contact details
Email: mail@hsalegal.com
Website: www.hsalegal.com

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link