India cut duties on some solar, wind goods

Jul 10, 2014 - The new government in India today presented its maiden budget which calls for the exemption of certain products used in the solar and wind industry from excise duties.

In particular, excise duties will be fully waived from ethylene vinyl acetate (EVA) and solar backsheets, including the inputs used in their production. The list also mentions solar tempered glass and flat copper wire for photovoltaic (PV) ribbons, all used in PV cells and modules. Furthermore, the Union budget includes a concessional basic customs duty of 5% for equipment and machinery used for installing solar systems, while the same are again fully exempted from excise duties.

As for wind energy, India’s finance minister Arun Jaitley has cut to 5% from 10% the basic customs duty on forged steel rings which are used in the making of bearings for wind turbines. Such bearings will be subject to zero excise duty as compared to 12% previously. Other parts and raw materials used in wind generator manufacturing will face no special additional duty (SAD).

The Narendra Modi-led government’s first budget also includes a 0% excise duty and 5% concessional basic customs duty on equipment for the installation of compressed biogas plants.

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