TWO, somewhat contradictory, news items emerged recently on virtually the same day. The first was a Union government’s decision to impose a steep 40 percent basic customs duty (BCD) on solar modules (which includes panels and other allied paraphernalia) and 25 percent customs duty on solar cells. This will come into effect from April 1, 2022.
The Ministry of New & Renewable Energy had issued a notification on March 9, which in effect said that this was part of the change-driver that Prime Minister Narendra Modi’s Atmanirbhar Bharat programme envisaged. On the horizon was the vision of India becoming a leading global supplier of these items. The rebound bonus was that such a steep hike in customs duty would provide a comfort zone for Indian manufacturers to boost their own production capabilities.
The second news item emanated from the observation of a Delhi High Court division bench of Justices Vipin Sanghi and Rekha Palli. Dealing with a petition challenging the government’s decision to export (and donate, in certain cases) Covid-19 vaccines, the bench commented that while the government was “exporting to not-so-friendly countries also…that will deprive the Indian population…earn the goodwill within the country and then earn it outside”. One reference was probably to India’s decision to send 45 million doses of Covid-19 vaccines to Pakistan, but it was also a reference in general of fulfilling domestic needs before foreign commitments are met. This, sort of resonates with the solar panel duty issue.
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