According to the Bloomberg report, the Indian government is considering a 7.5% tax on imported photovoltaic modules, from January to September 2007, India bought one-third of China's $ 8 billion cargo.
The Indian solar industry is heavily dependent on imported PV modules, of which about 89% are from abroad and 85% of them are from China, which are currently not taxed but may be reclassified as electric motors and have Import tariffs.
It is reported that India's Ministry of Finance is considering the new Ministry of Energy and Renewable Energy (MNRE) on the import of solar panels for taxation.At the upcoming auction items will be taxed, not the project has been obtained.
India recently announced a $ 1.7 billion solar manufacturing plan to expand its domestic manufacturing, and plans to impose tariffs on solar cells.
These changes, if implemented, will hit those under-bidding project developers, higher component costs have increased bid rates, and import duties may further raise costs.
Shantanu Jaiswal, head of India research at Bloomberg New Energy Finance, said: "Electricity producers do not need to cause immediate panic, but they are still nervous until the Ministry of Finance eventually announces the exemption of import duties on already auctioned items.
Last year, about 900 containers of photovoltaic modules were stopped by customs officials at the port, dragging down several projects and causing damage to developers, MNRC Minister RKSingh has updated the customs import panel and adopted Measures to avoid any costs.
