Finance Minister Nirmala Sitharaman has expanded the list of exempted capital goods for use in the manufacture of solar cells and panels in the country, in line with country’s energy transition plans.
“Energy transition is critical in the fight against climate change. To support energy transition, I propose to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country,” said Sitharaman during Budget 2024 speech.
Additionally, to support domestic manufacturing capacity of solar glass and tinned copper interconnect, the finance minister decided not to extend the exemption of customs duties provided to solar cells and panels.
Minister of new and renewable energy Pralhad Joshi told reporters, “As far as possible, we want to make everything in India from panels to everything. The announcement would benefit (the industry).”
The move is expected to provide further push to the PM Solar scheme announced by the government earlier. Launched in February, PM Solar scheme or PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar panels in 1 crore houses in India. The government announced an investment of over Rs 75,000 crore, which would provide up to 300 units of free electricity every month.
“The exemption of BCD on capital equipment for solar manufacturing and the withdrawal of duty exemption on solar glass will provide support for more investments in domestic supply chain and manufacturing job creation in India,” said Sujoy Ghosh, Vice President & Country Managing Director of First Solar.
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