India’s Finance Minister Nirmala Sitharaman introduced the Union Budget 2024-25 within the Lok Sabha this week. For the renewable power sector, significantly photo voltaic, the price range helps manufacturing by exempting particular equipment and tools used to fabricate photo voltaic cells and modules from fundamental customs obligation (BCD).
Such machines used to have 7.5% customs obligation. The exemption will cut back the price of photo voltaic cell and module producers.
Import obligation (BCD) exemptions are prolonged for particular objects used within the manufacturing of silicon wafers, EVA (ethylene vinyl acetate) sheets, and flat copper wire for photovoltaic ribbon. These exemptions will final till March 31, 2026, and the vary of supplies that may be imported has been expanded.
However, photo voltaic glass used for making photo voltaic cells or modules can be hit with a ten% customs obligation beginning October 1. Tinned copper interconnects for making photo voltaic cells or modules may even entice a 5% customs obligation from October 1.
“Due to the ample home capability to provide photo voltaic glass and tinned copper interconnect, I suggest to not lengthen the exemption from customs duties given to them,” stated the finance minister in his price range speech.
The customs obligation exemption of lively power controllers (AEC) used within the manufacturing of renewable energy system inverters may even be eradicated on September 30.
To increase battery manufacturing, BCD exemptions for elements and uncooked supplies used within the manufacturing of lithium-ion cells have been prolonged till March 31, 2026. Specific elements and elements for lithium manufacturing -ion batteries and battery packs are additionally exempt from BCD till March 31, 2026. Lithium, copper, and cobalt are exempted from customs obligation.
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