BHEL steps forward to protect solar power equipment manufacturing industry
Bharat Heavy Electricals Limited (BHEL) is facing a huge threat in its solar power equipment project by the cheaper equipment imported from China.
The Chinese dominate the manufacturing segment in the world, and have a share of about 57 per cent, using crystalline technology as per one estimate. This is affecting photo-voltaic (PV) manufacturers worldwide. It is, at present, estimated that the global production capacity for solar power items/equipment is in excess of the demand worldwide. This overcapacity coupled with cheaper prices offered of the Chinese manufactured cells and modules is a threat for Indian solar equipment manufacturers, including BHEL.
Government of India has taken following steps under Jawaharlal Nehru National Solar Mission (JNNSM) to protect Indian Solar Power Equipment Manufacturing Industry:
All Solar Power Developers under Phase I of JNNSM, using crystalline silicon technology, are required to procure cells and Modules manufactured in India.
As per Ministry of Finance (Department of Revenue), custom duty exemption is extended on goods required for manufacturing of solar cell and modules.
Additionally, all parts of machinery required for initial setting up of a solar power generation project or facility are fully exempt from excise duty. Moreover, such goods enjoy concessional rate of customs duty of 5 per cent adv.
