Standard Post with Image

Soaring uncertainties in solar segment to scale back the pace solar installations

<p><span style="font-size:11.0pt">The solar segment currently faces uncertainties regarding GST rates, Transmission constraints. And imposition of safeguard duties on import of solar equipment&rsquo;s from China and Malaysia has disinterested suppliers across borders. This may have a greater implication in terms of slow paced growth in solar segment. Indigenous capacities to cater needs of solar installation is about 3 GW which is far less than the demand in the current market. The demand supply gap was outfitted through imports from the China and Malaysia. </span></p> <p><span style="font-size:11pt">Objective of imposition of safeguard duty was to kick-start a domestic industry that&rsquo;s failed to take off in the face of ever-cheaper imports of solar cells. Such imposition comes with no benefit to domestic players and bottlenecking the pace of achieving solar targets. The duty could increase the capital cost of solar plants by as much as 14 percent. Even without the tariffs, India is likely to fall short of its 2022 targets.</span></p>