"The sudden imposition of the duty will put a number of projects that are currently under various stages of development under risk in the near term. "The proposed 70 per cent safeguard duty will also inflate project costs by 25 per cent and crank up viable tariff to Rs 3.75 per unit from around Rs 3 estimated earlier, making solar power less attractive to discoms. "The Central Board of Excise and Customs has sought to reclassify imported solar panels and modules in a category that attracts 7.5 per cent duty. Besides, various kinds of cess with the cost of a solar cell, around 30 cents at present, will go up to around 50 cents for Indian developers if 70 per cent safeguard duty is imposed. We hope the government addresses these concerns in the Budget," an industry expert said.

Source: Economic Times January 28, 2018 11:03 UTC