Weekly Power Sector Round up: 13th March 2021

India to impose customs duty on solar modules & cells from April 2022

India will impose a customs duty of 40% on solar modules and 25% on solar cells from April 2022, according to a Govt document, with the intention of boosting local manufacturing and cutting imports.

India did not have a customs duty on solar modules and cells until now but a limited period safeguard duty had been imposed which expires in July 2021.

“Proposal of Ministry of New and Renewable Energy (MNRE) to impose Basic Customs Duty on solar cells and modules (without grandfathering of bid out projects) has been agreed to by the Ministry of Finance,” the MNRE said in a memo dated March 9.

DISCOM debt at Rs 6 lakh crore; power distribution outlook negative: ICRA

Consolidated debt of state DISCOMs is estimated to be Rs 6 lakh crore, the highest level post implementation of UDAY scheme, said the ICRA.

This is in addition to the Rs 1.27 lakh crore pending payables to power generation companies, a 30% year on year increase.

Credit profile of DISCOMs continues to remain stressed due to high AT&C losses, inadequate tariffs and no subsidy support from state governments.