April 29, 2021
Thermal power among most affected segments
The lockdown restrictions across many states in the country amid the second wave of Covid-19 infections, could adversely impact the electricity demand growth prospects in FY2022.
As per the Power System Operation Corporation Limited (POSOCO) data for April 1-25 , the electricity demand is higher by 40.4% on a Y-o-Y basis, considering the favourable base effect, due to the impact of the all-India lockdown on electricity demand in April 2020.
However, the average daily demand has slowed down from 4,071 million units (MUs) (Y-o-Y growth of 48%) during the first 10 days of April 2021 to 3,923 MUs (Y-o-Y growth of 35%) during the subsequent 15 days, considering the surge in Covid cases and consequent restrictionsthat were imposed by various state governments.
Energising solar module manufacture
India is aiming to get back on the global solar manufacturing map. - BusinessLine×
The recently announced PLI scheme for this sector must be dovetailed with the host of other incentives, especially for MSMEs
As part of its move to incentivise the domestic industry and make the country ‘Atamnirbhar’, the Union Cabinet earlier this month approved the proposal of the Ministry of New and Renewable Energy (MNRE) for a Production Linked Incentive (PLI) scheme called the ‘National Programme on High Efficiency Solar PV (Photo Voltaic) Modules’.
Commerce Minister Piyush Goyal, while announcing the decision, had said that this is for achieving manufacturing capacity of Giga Watt (GW) scale in high efficiency solar PV modules, with an outlay of ₹4,500 crore. Solar capacity addition presently depends largely upon imported solar PV cells and modules as the domestic industry has limited operational capacities of solar PV cells and modules. T
Imposition of basic customs duty (BCD) on imported solar PV cells and modules will support domestic OEMsm, ICRA said in a note.Earlier, the Centre had approved a proposal to impose a BCD of 25 per cent on imported solar PV cells and 40 per cent .
Solar Tariff to rise as custom duty on gear to kick in
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Synopsis
The announcement to impose the duty on solar cells and modules does not have any grandfathering provision, which would have allowed projects already auctioned to import equipment under existing rules without paying the customs duty.
ANI
India will levy customs duty of 40% on solar modules and 25% on solar cells beginning April 2022.
Mumbai: The days of solar tariff bids at Rs 2 a unit may be over, as project cost is set to rise after the government announced the much-awaited customs duty on key equipment, aimed at boosting local manufacturing.