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<p><span style="font-size:11.0pt">Odisha High Court has put an Interim stay on imposition of safeguard duty, which has provided a sigh of relief among developers. Safeguard duty was imposed by Directorate General of Trade Remedies to safeguard interest of domestic manufacturers. </span></p> <p><span style="font-size:11pt">The DGTR imposed the safeguard duty of 25% for a year from July 30, followed by 20% for the next six months and 15% for another six, maintaining it was required to protect the local solar manufacturing industry. Over 90% of solar panels and modules used in Indian solar projects are imported, mostly from China and Malaysia, mainly because locally manufactured equipment cannot match their prices.</span></p> <p><span style="font-size:11pt">In recent NPTC auction tariffs has fallen below to Rs. 2.59 per unit, developers have not factored in implication of safeguard duty in the auctions. If court decision favours safeguard duty imposition on imported solar equipment, then the solar tariffs are certain to rise up in the range of Rs. 0.40 to 0.60 per unit. Solar developers may be required to resubmit their financial bids.</span></p>